The Federation of European Risk Management Associations has called upon the European Parliament to ensure that all insurance buyers are entitled to minimum levels of disclosure about the remuneration earned by their brokers.

Brussels-based FERMA has sent a position paper to the European Parliament's Economic and Monetary Affairs Committee, which will vote on a revised directive on insurance mediation in July.

Under the current draft of the revised Insurance Mediation Directive, only individual policyholders and small businesses automatically would be entitled to disclosure of their intermediary's remuneration.

Corporate insurance buyers currently would have to rely on voluntary disclosure agreements, FERMA said in a statement Tuesday.

The draft directive considers large buyers to be those that meet two of these three criteria: a balance sheet of more than €6.2 million ($8.1 million); net turnover of more than €12.8 million ($16.7 million); and an average number of 250 employees.

“We ask the legislators to consider business customer concerns and, as a minimum, provide them with a legal basis on which to request information from their intermediary,” Jorge Luzzi, president of FERMA, said in the statement. “This would enable them to make fully informed decisions about their insurance coverage.”

FERMA also said that if, the proposals were adopted in their current form, many medium-sized buyers would be left without legal rights to be informed of their brokers’ remuneration as the threshold for defining a large company is relatively low.

In 2010, FERMA and the European Federation of Insurance Intermediaries, known as Bipar, adopted a nonbinding protocol for disclosure of broker payment.

“Voluntary arrangements with the broker community are working well in a number of FERMA’s member countries, but not all business insurance buyers are in a position to negotiate full disclosure,” Mr. Luzzi said. “We would prefer to see all insurance buyers covered by the directive, but at the least they should be able to request disclosure and for that request to be enforceable.”