The Directive on Insurance Distribution (Directive 2016/97/EC) (the “IDD”) came into force on 22 February 2016. The IDD repeals and replaces the Insurance Mediation Directive (2002/92/EC) (the “IMD”) and must be brought into effect in EU member states by 23 February 2018.

Changes brought about by the IDD include the following:

  • Extending the scope of the regime to all sellers of insurance products.
  • New rules regarding the professional development of employees of insurance intermediaries.
  • More effective management and mitigation of conflicts of interest.
  • Special disclosure requirements where insurance products are bundled together.
  • Additional conduct of business standards for firms selling insurance-based investment products.

A link to the IDD can be found here.