18th September 2012

Directive on insurance transposed

The Ministry of Finance proposes a Bill on Insurance. The Bill transposes an EU-directive that introduces a common market in insurance and assuring. The common market would provide the same conditions and rights for both consumers and insurance companies. Financial products of any insurance company of member states should be accessible for consumers. Therefore, the directive disposes administrative and legal constraints and harmonizes rules of member states for maximal transmittance of the market. The directive also stipulates that financial supervision should be guaranteed to member states. Aiming at emerging of the common insurance market, the European Insurance and Occupational Pensions Authority (as a part of the EU financial supervision authority) should be set up. In general, the purpose of the directive is to promote stability of insurance financial sector as a whole and stipulate common financial market that would spill over into entire financial sector in the future.
The Bill is being considered at the internal comment procedure. Any comments are welcomed till 11 October. The directive should come into force in January 2014 as previous directives will be repealed.
For further information regarding the transposed directive, click here.

Members of the American Chamber of Commerce in the Czech Republic