It’s new EU legislation which sets out the regulatory requirements for firms designing and selling insurance products. It aims to improve protection for customers who buy products in the insurance sector, including insured pensions, and creates a standard approach for selling insurance.
It also helps us to:
Products affected by the new legislation include general insurance products, life insurance business (protection and pensions) and insurance-based investment products (such as investment bonds, endowments and trustee investment plans).
The key areas that we’re addressing as part of the IDD are:
As a product provider, we need to:
All insurance products sold must be consistent with the customer’s demands and needs. Before the contract’s finalised, the company selling the product must identify and specify the customer’s demands and needs using information provided by the customer. This doesn’t apply when a personal recommendation has been given to the customer.
Responsibility for providing the statement of demands and needs to the customer sits with the adviser.
If you have any further questions, please speak to your usual Royal London contact.