EIOPA publishes changes to the minimum amount of professional indemnity insurance cover and financial capacity intermediaries need under IDD

EIOPA has released draft RTS related to the minimum amounts of PII cover and financial capacity required for insurance intermediaries under the IDD. These standards aim to adjust the base euro amounts based on the rate of inflation.
According to the IDD, the minimum amounts for PII cover and financial capacity should be reviewed every five years. EIOPA conducted a review of these amounts and proposed adjustments based on the rate of inflation between January 2018 and December 2022, as indicated by the HICP (+20.32%). The proposed changes include an increase in the base amount for PII cover per claim, the base aggregate PII amount per year, and the base financial capacity amount.
– The base PII amount applying to each claim is to increase from
EUR 1 300 380 to EUR 1 564 610 [+ EUR 264 230]
– The base aggregate PII amount per year is to increase from EUR 1 924 560 to EUR 2 315 610 [+ EUR 391 050]
– The base financial capacity amount is to increase from EUR 19 510 to EUR 23 480 [+ EUR 3 970]
To gather input on the proposed changes, EIOPA conducted a public consultation (eventid=19699). While most stakeholders expressed support for the proposed draft RTS, some concerns were raised. These concerns included the methodology used for adjusting the minimum amounts and the need for sufficient time to adjust existing PII contracts to ensure the availability of the required insurance cover. These issues may be addressed in future reviews of the IDD or in implementing legislation developed by the EC.