Belgium: (Even) more transparency in the distribution of insurance products
07 June 2017
An FSMA regulation on information concerning costs and fees to be communicated by service providers relating to insurance mediation services in the Belgian territory (the “Regulation”) was approved through royal decree on 2 May 2017.
Prior to the conclusion of an insurance contract, except if it relates to savings or investment insurances, as well as upon each expiry date of such a contract, the client must be provided with the following information, each item described separately and expressed in euro:
- the policy premium related to the contract, excluding taxes and contributions;
- the taxes and contributions due by the client for the contract;
- the total amount to be paid by the client, namely the policy premium, including taxes and contributions;
- the estimated acquisition and administration costs.
The above information should also be followed by a cautionary statement using the wording laid down in the Regulation.
Moreover, before the client is bound by an insurance mediation service contract, he will be provided with the following information, each item described separately and expressed in euro, by the service provider (i.e. an insurance undertaking or an insurance intermediary) that offers such a contract:
- the compensation due by the client to the service provider for the contract;
- any tax applicable to the contract.
Besides, in regard to savings or investment insurances, it is worth noting that the Regulation does not provide for anything at this stage until it is seen how Regulation 1286/2014 on key information documents for packaged retail and insurance-based investment products (so-called PRIIPs) will be put into effect under Belgian law.
All of those provisions will enter into force on 1 January 2018.
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