The Insurance Distribution Directive (IDD)

The Insurance Distribution Directive (IDD) comes into effect in February 2018. What does this mean for our industry? 

The European Insurance and Occupational Pensions Authority (EIOPA) have yet to finalise their guidance, but it’s all about strengthening our industry and regulatory controls across Europe. The FCA have published their first consultation paper and a further consultation will be published later this year.

 What are the potential changes?

       Cross-selling – full clarity over add-ons with it all being about the customer’s choice.

       Training and competence - 15 hours of training each for front line sales staff and those involved in product development per year, complete with recorded evidence.*

       Product governance - enhanced product development, periodic review processes and requirements to be clear about the intended target market.

       Documentation – a new summary “Insurance Product Information Document” (IPID).

       Commission – clarity on the nature of fees and commission although not a percentage or an amount.

       Conflicts of interest - need to be disclosed to the customer where they can’t be avoided.

 What are Aviva doing at the moment?

       We’re working with the FCA and other industry bodies to fully understand the impact IDD.

       We’re putting ourselves in a position so that when the changes are announced, we’re able to rapidly respond to the requirements.

 What do you need to be doing?

       We’d advise you start preparing for these changes. Once the final rules are received the timescales may prove to be challenging.

If you have any questions about this, please get in touch with Wilf Gibbons on or 07786 855 591. We’ll continue to provide you with regular updates.



*subject to FCA announcements and confirmation.

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