Insurance Distribution Directive (IDD)—insurance-based investment products
Insurance Distribution Directive (IDD)—insurance-based investment products

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

  • Insurance Distribution Directive (IDD)—insurance-based investment products
  • Insurance-based investment products—overview
  • What are insurance-based investment products?
  • Conflicts of interest
  • Provision of appropriate information to customers
  • Inducements
  • Suitability and appropriateness
  • Other requirements

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.

Insurance-based investment products—overview

The Insurance Distribution Directive (Directive (EU) 2016/97) (IDD) replaced the Insurance Mediation Directive (2002/92/EC) (IMD) effective 1 October 2018. Whereas the IMD only applied to 'intermediaries', the IDD affects all market participants who distribute insurance products, thus bringing insurers and reinsurers directly within its scope. The IDD expanded the requirements of the IMD and introduced a number of new requirements, including additional requirements for insurance-based investment products (IBIPs) with regard to conflicts of interest, information to customers, remuneration, and suitability and appropriateness. This Practice Note provides a summary of the additional requirements for IBIPs, including relevant level 2 rules and level 3 guidance, and how they have been implemented in the UK.

For more information on the IDD, see:

  1. Insurance Distribution Directive (IDD)—essentials

  2. Insurance Distribution Directive (IDD)—background and legislative history

  3. Insurance Distribution Directive (IDD)—timeline

  4. Insurance Distribution Directive (IDD)—scope, registration, passporting and sanctions

  5. Insurance Distribution Directive (IDD)—organisational and conduct of business requirements

  6. Insurance Distribution Directive (IDD)—Insurance Product