Today, the deadline for EU Member States to implement the Insurance Distribution Directive (EU) 2016/97 (IDD) officially expires. The IDD introduces a new regulatory framework for insurance distributors. Many Member States have not been able to meet this deadline. To allow the European Insurance industry to implement the new rules in time, a legislative proposal has been published to postpone the transposition deadline of the IDD and the application date of the IDD.
National legislators and undertakings active in the European insurance industry will likely be provided with the opportunity to better prepare for a correct and effective implementation of the IDD.
On 21 December 2017, the European Commission adopted a legislative proposal for a directive to postpone the date of the application of the IDD by 7 months to 1 October 2018. On 14 February 2018, the Council of the European Union (the Council) has published a press release confirming that the Council has agreed to not only delay the application date to 1 October 2018, but also to extent the transposition deadline of the IDD to 1 July 2018. The legislative proposal, including amendments as to the transposition deadline, is scheduled to be discussed during the plenary session of the European Parliament on 1 March 2018. It is envisaged that the delay will apply retroactively from 23 February 2018.
The proposal will enable the insurance industry to prepare itself better.