The Insurance Distribution Directive or IDD for short is the new European Union directive covering the sale and advice of insurance products. It is mainly focused on the general insurance profession. This replaces the Insurance Mediation Directive which was published on 14 January 2003 and formed the basis of general insurance regulations by the FSA, which came into effect in the UK on 14 January 2005.
So here we are some 14 years later, and the world has moved on somewhat and it was felt that the regulatory landscape needed to be updated to reflect current requirements.
This article sheds light on when the IDD comes into effect and the implications for the UK insurance broking profession.
Topics covered include:
• Main aims of IDD.
• Who does the IDD affect?
• What are the main areas to consider?
• Will insurance brokers have much to do?
• What can be done when we still do not know the rules?