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20 March 2017


Welcome to the March edition of regulation round-up. I would like to take this opportunity to highlight our recent consultation paper (CP) on the Insurance Distribution Directive (IDD).

The IDD is wide-reaching EU legislation that aims to enhance consumer protection and promote competition in the general insurance and life sectors – reinforcing some of the rules we already have in place and amending others.

We encourage firms to start looking now at what changes this could mean for their business models, as the implementation date is February 2018. With that in mind, I want to briefly highlight some of the key aspects of the consultation paper. Our second CP will be published later this year, which will cover the remaining IDD requirements once they are adopted by the European Commission.

Professional and organisational requirements

  • All staff involved in insurance and reinsurance distribution must have the appropriate knowledge and ability to perform their duties. This includes undertaking at least 15 hours of continuing professional development each year.
  • Firms must hold adequate levels of professional indemnity insurance and put measures in place to protect customers where their premiums are paid to intermediaries.


  • Insurance distributors must have procedures in place for handling complaints, including procedures to provide out-of-court redress for consumers.

Conduct requirements for non-investment insurance contracts

  • Building on the existing requirements of the Insurance Mediation Directive (IMD), the IDD sets out requirements for information disclosures and general principles of conduct.

Regulatory regime for ancillary insurance intermediaries (AIIs)

  • The IDD introduces a new category of firm called AIIs whose primary business is not insurance distribution, but who distribute disributing insurance products which complement other goods or services they provide. These can include motor vehicle dealers, travel agents and electrical goods retailers.
  • Different requirements apply to AIIs depending on the nature of the insurance they distribute.

We encourage firms to consider our proposals and respond to our consultation by 7 June 2017. Our short video gives you further insight into the content of the CP.

Corporate publications.
On 18 April we will be publishing our Mission, the Business Plan for 2017/18, Sector Views and the Fees Consultation Paper. The deadline for responding to Fees Consultation Paper will be 9 June 2017.



By Ian Beardmore

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