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Insurance distribution directive (IDD) in a nutshell


The European Insurance Distribution Directive (IDD) is a next step in the harmonization of the European Insurance market. This directive (Directive 2016/97/EU) was published in the Official Journal of the European Union on the 2nd of February 2016 and replaces the current Insurance Mediation Directive of 2002.

The directive provides an updated and harmonised legal framework containing rules applicable for the distribution of insurance and reinsurance products, including insurance-based investment product (PRIIP’s). It includes important requirements on:

  • Registration of insurance distributors & cross-border activities
  • Professional knowledge & competence and organisation
  • General principles on demands and needs of customer
  • Conduct of business rules – Transparency and Conflict of Interest
  • Insurance Product Information Document (IPID) for Non-Life products
  • Cross-selling
  • Product development and governance
  • Additional requirements for insurance-based investment products