Insurance Distribution Directive – Postponed
The Insurance Distribution Directive (IDD), which is set to come into force on 23 February 2018, sets out how insurance products are to be sold including across borders. It sets out the information that Consumers should receive before they accept an insurance contract. It also imposes conduct of business and transparency rules on distributors of insurance products.
Just before Christmas, the European Commission announced a proposal to push back the application date of the IDD to 1 October 2018 following requests from the European Parliament and the 16 member states.
Member states are still required to transpose the IDD into National Law by the 23 February 2018. However; this new proposal will mean that firms will have a further seven months (up until 1st October 2018) to ensure that they are complying with the IDD.
This is not definite a postponement as the European Parliament and the Council will need to agree and confirm the new application date but it is highly likely and has been widely publicised.
Please do not take the proposed postponement as an indicator that the IDD can be put on the back burner. The delay is in response to the recognition that some insurance distributors are not yet fully ready for the new rules. During the extra seven months, regulators will expect firms to be working towards fully understanding the requirements of the IDD and ensuring they are ready to comply with the rules by the time they come into force.
Should you have any queries regarding the IDD please do not hesitate to contact a member of the COBRA Network Compliance Team.