Insurance distribution

Insurance Distribution Directive

Following the implementation of the Directive 2002/92/EC, Insurance Mediation Directive (IMD), it became clear that there were inconsistencies in the way it was being implemented across Member States. On 1 October 2018, Directive (EU) 2016/97, the Insurance Distribution Directive (IDD), replaced the IMD. The main objective of the IDD is to harmonise the national provisions governing insurance and reinsurance distribution across Member States, therefore creating a ‘level playing field’ between distributors. The IDD seeks to improve transparency regarding conflicts of interest and remuneration, and in relation to general insurance products, customers must be given a standardised insurance-product information document (IPID) to explain the key features of the insurance product. The IDD expands the professional requirements for insurance and reinsurance distributors to ensure that individuals involved in selling insurance products are competent to do so. Any individual or firm who is involved in insurance and reinsurance distribution will, in the absence of an exemption, be subject to the IDD. Unless...