New legal framework: Insurance Distribution Directive
The Insurance Distribution Directive or IDD (Directive 2016/97/EU) regulates the activities of all distributors of insurance products: intermediaries, insurance companies, their employees, bank-assurance, ancillary insurance intermediaries (e.g. travel agents or car rental companies), including online distribution. The Directive determines the information that should be given to consumers before they sign an insurance contract, imposes certain conduct of business and transparency rules for distributors, clarifies the rules for cross-border business and addresses the supervision and sanctioning of insurance distributors if they breach the provisions of the Directive. It also includes additional requirements for the sale of insurance products with investment elements to ensure that insurance policyholders get a similar level of protection as buyers of other investment products regulated under MiFID II.
The IDD was adopted on 20 January 2016. Member States will need to transpose it into national legislation by 23 February 2018. The new rules will apply to all insurance and reinsurance distributors covered by the Directive as from that date.
- Text of the Directive
- Frequently asked questions
- Press release
- Insurance distribution in the single market – meeting consumers’ needs in the internet age, speech by former Commissioner Lord Hill (30.1.2015)
The Directive empowers the Commission to adopt delegated acts with respect to: (1) conflicts of interests, (2) inducements, (3) product oversight and governance and (3) suitability and appropriateness. The Commission will adopt the delegated acts after receiving EIOPA advice, which is due by 1 February 2017.
- Mandate sent to EIOPA: request for technical advice on possible delegated acts concerning the IDD (24.2.2016)
- EIOPA online survey (summer 2016)
Implementing technical standards
The Directive provides for the adoption by the Commission of implementing technical standards regarding a standardised Insurance Product Information Document (IPID) for non-life insurance products. EIOPA is to submit a draft by 23 February 2017.
Regulatory technical standards
The Directive empowers the Commission to adopt regulatory technical standards on the adaptation of the required amounts of professional indemnity insurance for insurance distributors. EIOPA is to submit a draft by 30 June 2018.
Current legal framework: Insurance Mediation Directive (IMD)
Until 23 February 2018, the Insurance Mediation Directive of 2002 (Directive 2002/92/EC) remains the applicable EU legal framework for insurance distribution. It only applies to insurance sales via intermediaries, not to insurance products sold directly by insurance companies.
- EIOPA consumer protection website
- EIOPA website on general good rules
- Commission interpretative communication: Freedom to provide services and the general good in the insurance sector (2000)
- Protocol on cooperation between national authorities for exchanges of information and notifications under the insurance mediation directive (Luxembourg protocol)
- List of competent authorities (93 KB) responsible for ensuring the implementation of the insurance mediation directive and list of EU countries wishing to be notified by other countries’ competent authorities when (re)insurance intermediaries want to carry on business in their territory.
Insurance Distribution Directive
- Commission original proposal (3.7.2012)
- Impact assessment:
Insurance Mediation Directive
- Request for advice regarding the revision of the Insurance Mediation Directive (sent early 2010 to the Committee of European Insurance and Occupational Pensions Supervisors – CEIOPS).
- Public consultation (autumn 2010) to collect views from all stakeholders on how to address the main weaknesses in the current Directive.
- Public hearing on the revision of the Insurance Mediation Directive (December 2010 – Brussels):
- Study on the impact of revising the Insurance Mediation Directive by Price Waterhouse Coopers – Luxembourg (ETD/2007/IM/B2/51) – Final Report