On 1 February 2017, EIOPA published its Technical Advice on possible delegated acts concerning the Insurance Distribution Directive. The Insurance Distribution Directive must be implemented by Member States by 23 February 2018 and sets out new rules on distribution of insurance products.
The technical advice sets out policy proposals in four areas. Firstly, in relation to product oversight and governance, the technical advice sets out the criteria for insurance intermediaries acting as manufacturers and the level of detail expected from manufacturers in defining the target market. Secondly, potential situations in which conflicts of interest may arise are defined in relation to the distribution of insurancebased investment products (IBIPs). Thirdly, EIOPA sets out criteria for assessing if inducements/commissions are designed in such a way as to have a detrimental impact on the quality of services to customers. Finally, other than in respect of non-complex IBIPs, insurance intermediaries should gather the appropriate information from their customers to conduct appropriateness or suitability assessments of IBIPs.
A link to the technical advice is here.