Insurance Distribution Directive (IDD) Update

Insurance Distribution Directive (IDD) Update

The sale of insurance products in the EU is regulated by the Insurance Mediation Directive (IMD). The European Commission adopted new rules in 2016 known as the Insurance Distribution Directive (IDD) to widen the IMD's scope to all sellers of insurance products, including insurance companies that sell directly to consumers. These include providing greater transparency in the price and costs of insurance products. The IDD was scheduled to go live 23 February 2018. However, the European Commission has proposed to postpone the application date by 7 months to 1 October 2018.

Does IDD apply to Developers and Builders?

The new framework applies to insurance companies that sell directly to consumers. This means that it does not apply to Developers and Builders purchasing structural warranties (as a commercial customer) to provide to home owners as part of a new home sale and no additional action is required.

More information:

More information can be found here: https://ec.europa.eu/info/business-economy-euro/banking-and-finance/insurance-and-pensions/insurance-distribution_en