Insurance Distribution Directive (IDD)—essentials

The following Insurance & Reinsurance practice note provides comprehensive and up to date legal information covering:

  • Insurance Distribution Directive (IDD)—essentials
  • Objectives of the IDD
  • Who is affected by the IDD?
  • Exemptions from the IDD
  • IDD—organisational and conduct of business requirements
  • Insurance product information document (IPID)
  • Product oversight and governance requirements
  • Additional requirements for insurance based investment products (IBIPs)
  • IDD—registration requirements and freedom to provide services
  • Registration with Member States
  • More...

Insurance Distribution Directive (IDD)—essentials

This Practice Note provides an overview of the Insurance Distribution Directive (IDD) and the UK’s implementation of it. Following the UK’s departure from the EU, the EU IDD regime and the UK insurance distribution rules have begun to diverge as EU legislation coming into effect after IP completion day (31 December 2020) makes changes to the EU IDD regime but has no effect in the UK. The Prudential Regulation Authority (PRA) has confirmed that UK firms should continue to have regard to guidance from EU institutions that was issued prior to IP completion day. Rules and guidance issued after IP completion day may be of interest to UK firms, but it is not binding on them. See Practice Note: Impact of Brexit on distribution of insurance based investment products for a summary of the changes to the UK insurance distribution rules post IP completion day.

See: IDD—EIOPA guidance and EU IDD—latest developments for information about post IP completion day developments in the EU IDD regime.

For the latest developments in relation to the IDD, see: Insurance Distribution Directive (IDD)—timeline.

Objectives of the IDD

Following the implementation of the Directive 2002/92/EC, Insurance Mediation Directive (IMD), it became apparent that there was a disparity in how EU Member States had interpreted the IMD. There was also concern around the sale of life insurance and insurance-based investment products

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