The Council of the European Union agreed to a proposal by the European Commission to extend the transposition deadline and application of new rules on insurance distribution.
The new Insurance Distribution Directive, which is aimed at improving consumer protection for insurance products, was due to take effect Feb. 23, and member states had until then to transpose it into national laws and regulations.
Following the agreement, the transposition deadline of the new rules was set for July 1 and the application date for Oct. 1.
"The delay will enable the insurance industry to better prepare for the directive and for the changes necessary to comply with implementing rules," the Council said in a Feb. 14 statement.
Given that the European Parliament and the Council are not expected to adopt the amending directive before March, the delay will apply retroactively from Feb. 23, the statement added.