European Parliament urges Insurance Distribution Directive delay
Insurers in the UK and Europe have welcomed calls from the European Parliament’s ECON Committee to delay the application date of the Insurance Distribution Directive (IDD).
The new directive, which is due to come into force on 23 February 2018, will replace the current Insurance Mediation Directive and will govern how insurance is sold across the European Union. It is designed to boost competition between insurers and ensure appropriate protection for consumers.
ABI director of regulation Hugh Savill said: “The ABI welcomes the ECON Committee of the European Parliament’s call for a delay of the application date of the IDD. Consumers will benefit from a proper and coherent implementation of the IDD. It is an important indicator of cooperation that the Committee recognises that insurers across Europe require regulatory certainty during this challenging implementation process, no matter their size.
He added: “We support the objectives of the IDD, and believe that it is important to grant insurers the sufficient time to properly implement the complex requirements, in order to draw the maximum benefits for firms and consumers.”
Pan-European insurance and reinsurance federation Insurance Europe has also welcomed the call for a delay.
Insurance Europe director general Michaela Koller said: “Insurers need to be given sufficient time to implement the IDD and they can only do so with legal certainty, once the final rules are known.
“Insurance distribution processes will be heavily impacted by the new conduct of business requirements in the IDD. For the benefit of consumers, insurers need an appropriate amount of time to properly implement these requirements.
“Therefore, Insurance Europe calls on all of the European institutions to recognise the importance of delaying the application of the IDD and to take appropriate action.”