Insurance Distribution Directive Update 2018

Article publish date: Wednesday 10 January 2018

The changes are wide-ranging, affecting sales journeys, product literature and product governance through to training and remuneration disclosure. It’s also just been proposed by the European Commission to delay the application of IDD to 1 October 2018. Although at this point the proposal has not yet entered into law so we’re following developments closely to understand what this means in practice and will update you further when this becomes clear.

What’s changing?

  • Modifications to the sales journey to obtaining Demands and Needs and playing back a summary at the end of the sales process, consent for online documents, the requirement to offer paper copies of documents and Insurance Product Information Document (IPIDs) to replace the policy summary.
  • Regardless of the potential delay in line with the requirements we can confirm that from February 2018 IPIDs will be provided for all Personal Lines products. You need to issue IPIDs at new business and renewal. You’ll be able to download these from Aviva Broker or your software house.
  • For Commercial customers we will ensure that all of the information required in a IPID is provided but not necessarily in the same format. The FCA guidance permits this approach.

What are we doing?

  • Our implementation programme is progressing on the basis of the known and draft regulations, some of which may still differ from the final requirements. We acknowledge that we may need to adapt what we have implemented once the full rules are announced.
  • We’re confident that the actions we’re taking will make sure there’s no customer detriment resulting from the IDD changes after February 2018 and if a delay is confirmed we’ll be using the intervening period to make further enhancements.

What do you need to be doing?

We hope that you’re preparing for the changes as timescales are challenging.

We’ll continue to provide further updates, but in the meantime, if you require further information then visit FCABIBA or EIOPA websites.

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