The Insurance Distribution Directive (the “IDD”) came into force on 22 February 2016; the current deadline for transposition by member states is 23 February 2018. Recently, the European Parliament’s Economic and Monetary Affairs Committee (“ECON”) recommended that the application date of the IDD is postponed until 1 October 2018. On the other hand, all Member states would still be required to transpose the IDD into national legislation by 23 February 2018, ECON does not recommend the IDD transposition deadline to change.
ECON’s concern is that there will not be enough time for the insurance industry to implement the necessary technical and organizational changes to their daily course of business. One clear reason for the proposal are delays in the legislative process, in timely passing through two major delegated acts.
Insurance distribution processes will be heavily impacted by the IDD as it introduces new regulation of insurance brokers, agents and other intermediaries that are currently regulated by the 2002 Insurance Mediation Directive.
The insurance market responded positively. Michaela Koller (director general of trade body Insurance Europe) and Hugh Savill (Association of British Insurers) welcomed ECON's intervention.