Board Member of FECIF, Chairperson of FEPI, and Partner at The Spectrum IFA Group
The Insurance Distribution Directive – Are you ready?
Since 2005, insurance intermediaries have operated under the rules of Directive (2002/92/EC) – the Insurance Mediation Directive (IMD). This has now been replaced by the EU Directive 2016/97 – the Insurance Distribution Directive (IDD). The IDD applies to all forms of insurance, for example, car, household and travel insurance through to life insurance.
Originally, the IDD should have applied from 23rd February 2018. However, despite the two-year transition period foreseen following the publication of the IDD, by late 2017, it was identified that some insurance distributors would not be ready to meet the deadline. Arising out of this, the European Parliament and 16 Member States requested a postponement and subsequently, the deadline for the application of the rules was pushed back to 1st October 2018. The new date also applies to the application of the two Commission Delegated Regulations on Product Oversight & Governance and Conduct of Business Rules.
Member States Regulators are obliged to transpose EU law into national law by the due dates that are set and inform the Commission that this has been done. However, as concerns IDD this has still not been done by all Member States, as can be seen...