Insurance Mediation Directive (IMD)

Insurance Mediation Directive (IMD)

What is the IMD?

You may not be aware that the sale of insurance products in the EU is regulated by the insurance mediation directive (IMD). Insurance distribution means to sell, propose to sell, advise on or carry out other work to prepare an insurance contract. It includes dealing with claims after an insurance event.

Insurance Distribution Directive (IDD) – new rules

The European Commission adopted new rules 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 – which includes structural warranties. These include providing greater transparency in the price and costs of insurance products.

What does this mean to me when buying a warranty?

If you are looking to purchase a self-build or completed housing warranty for your own benefit, under the new rules, you will receive a summary document providing you with a basic overview of the warranty scheme as part of your quotation. This is known as an insurance product information document (IPID) and provides clearer information on non-life insurance products, so that consumers can make more informed decisions.

This will enable you to review, compare and ensure your warranty needs are best met using the information provided.

When is this live?

The IDD should apply from 23 February 2018. However, the European Commission has proposed to postpone the application date by 7 months to 1 October 2018.

More information:

More information can be found here: