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The Insurance Distribution Directive (IDD) introduced


  • 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.

Key provisions

  • 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