Insurance Distribution Directive (IDD)—background and legislative history
Produced in partnership with Jacob Ghanty of Bryan Cave Leighton Paisner LLP
Insurance Distribution Directive (IDD)—background and legislative history

The following Insurance & Reinsurance guidance note Produced in partnership with Jacob Ghanty of Bryan Cave Leighton Paisner LLP provides comprehensive and up to date legal information covering:

  • Insurance Distribution Directive (IDD)—background and legislative history
  • The insurance mediation directive
  • Background to the commission’s review of the IMD
  • The European Commission’s review of the IMD
  • Commission proposal to implement IMD 2
  • The progression of the IDD through the legislative process
  • Parliament and Council adoption of the IDD
  • Timeline

BREXIT: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. For further guidance, see Practice Note: Impact of Brexit: Insurance distribution-quick guide.

The Insurance Distribution Directive (Directive (EU) 2016/97) (IDD) repealed and replaced the Insurance Mediation Directive (Directive 2002/92/EC) (IMD) effective 1 October 2018. The IDD aims to harmonise the implementation of the provision of insurance and reinsurance distribution across EU Member States, provide consistency in the sale of insurance and reinsurance products, increase consumer protection and promote cross-border integration. Like the IMD, the IDD covers the authorisation, passporting arrangements and regulatory requirements for insurance and reinsurance intermediaries. However, the application of the IDD is wider, covering all market participants that distribute insurance products, thus bringing insurance and reinsurance undertakings into scope. The IDD also sets out expanded organisational and conduct of business requirements and introduces requirements in new areas such as product oversight and governance and enhanced conduct rules for insurance-based investment products.

This Practice Note examines the European Commission’s review of the IMD, its proposals to revise the directive and the legislative process that resulted in the adoption of the IDD.

For more information on the IDD, see:

  1. Insurance Distribution