Insurance Distribution Directive (IDD)—essentials
Insurance Distribution Directive (IDD)—essentials

The following Insurance & Reinsurance guidance 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?
  • 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
  • IDD—sanctions and redress
  • IDD—Level 2 implementing technical standards and delegated acts
  • more

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. This has an impact on this Practice Note. For further guidance, see Practice Note: Impact of Brexit: Insurance distribution-quick guide.

Objectives of the IDD

Following the implementation of the Insurance Mediation Directive (IMD) (Directive 2002/92/EC), 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 (IBIPs) which appeared to offer less consumer protection than the sale of non-insurance investment products. Following a number of public hearings, reviews, consultations and reports, the IMD was repealed and replaced by the Insurance Distribution Directive (IDD) (Directive 2016/97/EU). The IDD was published in the Official Journal of the EU on 2 February 2016 and entered into force on 23 February 2016. EU Member States were required to transpose the IDD into national law by 1 July 2018 (this was delayed from the original transposition date of 23 February 2018). Firms were required to comply with the IDD by 1 October 2018.

For further details about the background and legislative history of the