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

The following Insurance & Reinsurance practice 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

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

Background

The Directive (EU) 2016/97, Insurance Distribution Directive (IDD) replaced the Directive (2002/92/EC), Insurance Mediation (IMD) effective 1 October 2018. Under Article 20 of Directive (EU) 2016/97, 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 and how they have been transposed in the UK. As of exit day (31 January 2020) the UK is no longer an EU Member State but the IDD had been fully transposed within the UK before that date and the IDD requirements applying to IPIDs continue to apply.

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

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