Author : Philipp Haye
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Page : pages
File Size : 19,51 MB
Release : 2018
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ISBN :
This thesis analyzes the effect of the Insurance Distribution Directive (IDD) on the German insurance market. This EU directive was initiated to increase customer protection by creating a framework that better aligns the interest and incentives of consumers, insurers and insurance intermediaries. Especially in Germany, the IDD was viewed as an impulse to move the insurance intermediation market from the currently dominant compensation-based remuneration system towards a fee-for-advice system. However, the analysis shows that the result of the German implementation of the IDD is rather soft and will not lead to a major strengthening of the fee-for-advice system. A thorough literature review and an analysis on the effects of stronger regulations in other EU member states prior to the introduction of the IDD lead to the conclusion that a fee-foradvice system is generally not superior to the compensation-based system and therefore the decision of the German legislator to not considerably restrict insurance intermediaries with respect to their remuneration seems reasonable from the author's point of view.