European Commission adopts proposal to delay application date of the Insurance Distribution Directive (IDD) to 1 October 2018
Following calls from the European Parliament, the European Commission has proposed extending the application date of the IDD to 1 October 2018, to give the insurance industry more time to prepare for the changes. The IDD will replace the Insurance Mediation Directive and harmonise insurance distribution laws across Europe
Note that, although this will extend the date that the new requirements will take effect, the deadline for member states to transpose the IDD into national law will remain unchanged (23 February 2018).
The European Parliament and Council will now need to confirm the new application date in an accelerated legislative procedure, which is expected to happen in January.
Given the amount of work required by insurers and insurance distributors to implement the new requirements effectively, we expect that the delay will be broadly welcomed.