Disclosure of life assurance commissions made by salespeople and brokers will be mandatory under new regulations currently being drafted, the Minister of State at the Department of Enterprise, Trade and Employment, Mr Noel Treacy, said yesterday. Mr Treacy, who was speaking after opening the Professional Insurance Brokers Association (PIBA) annual general meeting, said the demand for transparency in the industry was consumer-driven.

The move represents a turnaround from Mr Treacy's position in January, when he said it was "not essential" to have a discrete disclosure regime once total charges made against life assurance policies were revealed. He later agreed to re-examine his draft regulation order.

Addressing PIBA members, Mr Treacy said policyholders would be provided with a tabular statement, showing full policy details and "health warnings", following the introduction of the new regulations.

He said the need for regulations could be seen from the complaints being made to the insurance ombudsman on policies.

PIBA, which has 430 members, welcomed the announcement. A spokesman said that brokers were looking for a level playing field and that it was important for clients' confidence that people were clear about disclosure.

Mr Treacy, in referring to the difficulties of assessing commissions paid indirectly, such as through the provision of company cars and bonuses, said that a "workable formula" was under examination by the Department in consultation with the insurance industry.

Regulations in a new Bill would also cover insurance intermediaries taking client money, who would need authorisation by the Central Bank and be required to meet capital and solvency requirements.

"It gives the Central Bank, as the regulator, wide powers to oversee the activities of each intermediary, thus protecting the consumer from those few intermediaries, who may be tempted to misappropriate client monies," he said.