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.