- Introduced in October 2018, the IDD covers the authorisation, passporting arrangements and regulatory requirements for insurance and reinsurance intermediaries.
- IDD replaces the Insurance Mediation Directive “IMD”.
- Applies to all firms including; insurers, reinsurers, insurance brokers, banks, building societies that sell insurance, financial advisers, claims management companies, aggregators and other price comparison websites, car dealers and in scope ancillary insurance intermediaries.
- Application of the IDD is wider than IMD and covers organisational and conduct of business requirements for insurance and reinsurance undertakings.
- Harmonisation of insurance regulation across the EU, create level playing field for insurance intermediaries and insurance distribution.
- Introduces requirements in new areas, including product oversight and governance, and enhanced conduct rules for investment-based insurance products.
- Introduces new professional, organisational and prudential requirements
- Covers professional indemnity cover, and training and competence requirements
- Conduct of business general principles including acting in customers’ best interest
- Product oversight and governance requirements (POG)
- Non- life insurance distributors to provide the customer with a standardised Insurance Product Information Document (IPID)
- Remuneration disclosure requirements
- Conflicts of interest disclosures, pre-contract
- Stricter approach to the identification of customer specific demands and needs and offering products consistent with those needs
- Complaints handling and out of court redress
Timeline: Effective from 1 October 2018