Upcoming Changes In Insurance Distribution

On 1 December 2018 the new Insurance Distribution Act (the "Act") became effective in the Czech Republic. It replaces the still effective Act No. 38/2004 Coll., on Insurance Intermediaries and Loss Adjusters, as amended ("IILA"), and implements the plan envisaged by the European Parliament and the Council (EU) Directive 2016/97 on insurance distribution (revised version) ("IDD"), even if a little later than anticipated.

In this article we will briefly try to highlight selected questions in the Act (inevitably making certain simplifications).

Fewer categories of intermediaries

An important change introduced by the Act is a reduction in the number of categories of persons authorised to mediate insurance or reinsurance from the IILA's original six to four.