The Government has published a new Insurance Bill which aims to improve regulation and increase transparency in the industry. The Insurance Bill 1999 transfers regulation of insurance intermediaries to the Central Bank and also paves the way for the introduction of regulations requiring commission disclosure next year.

The Bill, which has four main purposes, will be introduced to the Dail early next year. The main thrust of the legislation is to make those selling insurance subject to the powers and provisions of the Investment Intermediaries Act, 1995, which is administered by the Central Bank.

At present, insurance agents and brokers are regulated by the Department of Enterprise, Trade and Employment but increasing convergence between insurance and investment means both types of product are frequently available from the same intermediary.

The Bill also provides the framework for the long-awaited introduction of regulations on disclosure, originally planned for last autumn. He said the objectives of the new disclosure regime would be: to simplify the presentation of insurance products to the consumer; to minimise the scope for mis-selling; to ensure transparency of all charges and expenses; to identify the principal with whom the consumer is dealing; and to provide an adequate enforcement system.

The disclosure regulations planned by the Minister will initially be restricted to the sale of life assurance products but regulations for non-life products will also be made in due course.

The Bill was welcomed by the Irish Brokers Association, which said it would improve regulation, transparency and consequently, consumer confidence in the financial services industry.