The insurance industry did not start the global financial crisis and reform of the sector will be proportionate and balanced, according to EU Commissioner Michel Barnier.

He told the European Federation of Insurance and Financial Intermediaries (BIPAR) conference at the European Parliament in Brussels that the proposed reforms will reflect how insurance differs from banking.

He says revision of the Insurance Mediation Directive is an important step in restoring consumer confidence in the financial sector.

The British Insurance Brokers’ Association (BIBA) has welcomed the move to include in the directive all those selling and advising on insurance, saying consumers are entitled to the same information and protection wherever they buy their cover.

But BIBA CEO Eric Galbraith says he is concerned that changes to the transparency process will raise costs, with no benefit to consumers or small businesses.

BIPAR Chairman Paul Carty says the legislation must be proportionate, allow choice and not distort competition. 

“Achieving a level playing field for consumers and intermediaries is very important to us,” he said. “The insurance sector did not start the financial crisis and we are different to other sectors of financial services, but we are willing to play our part.”