Regulatory changes brought about by the IDD Directive and challenges posed by the regulatory changes

A deep history 1828 Speaker Marko Štajduhar dating back to Executive Director, Willis Towers Watson d.d., Croatia I was born in Zagreb, Croatia in 1975, where I finished my education and graduated at Faculty of Economics at University of Zagreb in 1998. My career was mainly related to the financial sector, both banking and insurance: 2013 - present: CEO at Willis Towers Watson d.d. Croatia 2012.-2013. Head of Sales at BNP Paribas Cardif Croatia 2008.-2012. Director of Large and International Corporate Department at Societe Generale – Splitska Banka d.d. 2003 -2007. Corporate Manager at Hypo -Alpe -Adria Bank d.d. A deep history dating back to 1828

Willis Towers Watson operations all around the world Great Britain: 16% Western Europe: 18% North America: 36% International: 30% - 39,000 employees over 140 countries arround the world $8.2 billion revenues

differences between distribution channels” Insurance Distribution Directive (IDD) 2016/97 ROOTS Roots in Directive 2002/92 / EC, which regulates the basic regulatory rules of business of agents and intermediaries for insurance products (differences, registration, education) Better customer protection – sales chanels regulation is upgraded – intermediaries, ancillary sales channels, aggregators (price comparation web sites) Improve the competitive landscape of the European insurance industry Empower cross-border business inside EU – regulates conditions for doing business in other EU countries Setting up minimal harmonization of the insurance markets across the EU – each EU country has to adopt local legislation in order to meet requirment of the directive AIMS A deep history dating back to 1828 „Consumers should benefit from the same level of protection despite the differences between distribution channels”

Insurance Distribution Directive (IDD) 2016/97- Influence The entry into force of the IDD will have a minor impact on the current operations of international brokers due to the fact that they already had to comply to their group policies which in general have a lot of similarities with IDD Significant impact of this directive will be on local brokers since they have to implement new procedures in order to comply with IDD A deep history dating back to 1828 The improvements should be made in: transparency of products („IPID”) procedures transparency of conflict of interes policies and procedures transparency of remuneration rules IT infrastructure

Insurance Distribution Directive (IDD) 2016/97- Challenges BROKER Setting up policies reflecting transparency of business frame - Conflict of interes - Renumeration transparency - TOBA Ensure consistency and security of stored personal data Set-up and operate internal processes to ensure fullfillment of policies To unify the legal requerments for the establishment of insurance distribution company (agent vs. broker) To harmonise Cross-laws (Differences inside local regulations) eg. public procurement law vs. insurance law To establish independent bodies responsible for out-of-court settlement of disputes REGULATOR

Insurance Distribution Directive (IDD) 2016/97 - Closure IDD has positive influence to whole insurance distribution business Local regulatory changes are necessary to improve the competitivenes and equal position of all participants (distributors) Significant investments into internal procedures and infrastructure A deep history dating back to 1828 Member States shall ensure that, when carrying out insurance distribution, insurance distributors always act honestly, fairly and professionally in accordance with the best interests of their customers.

Thank you for your attention ! Marko Stajduhar, CEO +385(1) 48 48 510 marko.stajduhar@willistowerswatson.hr Willis Towers Watson d.d. Petrinjska 83 |10 000 Zagreb | Croatia https://www.willistowerswatson.com/en-HR