Quick start guide to the insurance distribution directive
The Insurance Distribution Directive (IDD) came into force in October 2018 and introduced a number of new obligations that firms involved in the designing and selling of insurance products need to meet.
The aim of this EU legislation is to enhance consumer protection when buying insurance and to support competition between insurance distributors.
Key areas covered by the regulation include:
- Professional, organisational and prudential requirements covering professional indemnity cover, and training and competence
- Conduct of business general principles including acting in customers’ best interests
- Customer demands and needs
- Product oversight and governance
- Remuneration disclosure
- Conflicts of interest disclosure
- Pre-contract disclosures
- Complaints handling and out of court redress.
We’ll focus on the first three of these and highlight things you could consider within your business in order to meet the IDD requirements.
The information provided is based on our current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. Also it may not reflect the options available under a specific product which may not be as wide as legislations and regulations allow.
All references to taxation are based on our understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances of the investor.