Insurance Distribution Directive (IDD)—Insurance Product Information Document requirements
Insurance Distribution Directive (IDD)—Insurance Product Information Document requirements

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

  • Insurance Distribution Directive (IDD)—Insurance Product Information Document requirements
  • Background
  • Requirements of the IPID
  • UK implementation

BREXIT: The UK is leaving the EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For further guidance, see Practice Note: Preparing for Brexit: Insurance distribution—quick guide.

Background

The Insurance Distribution Directive (Directive (EU) 2016/97) (IDD) replaced the Insurance Mediation Directive (2002/92/EC) (IMD) effective 1 October 2018. Under Article 20 of the IDD, the manufacturer of a non-life insurance product, such as a motor insurance or home contents policy, is required to draw up a document called the Insurance Product Information Document (IPID), which insurance distributors must provide to the customer prior to the conclusion of the insurance contract. This Practice Note describes the IPID requirements of the IDD.

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-based investment products

Requirements of the IPID

Prior to the conclusion of a contract, whether or not advice is given and irrespective of whether the insurance product is part of a package, the insurance distributor must provide the customer with the relevant information about the insurance product in a comprehensible form to allow the customer to