Insurers not ready for EU Insurance Distribution Directive
The ECON committee of the European Parliament has called on the European Commission to delay the implementation of the Insurance Distribution Directive (IDD).
The new directive which is set to come into force in February 2018 will replace the current Insurance Mediation Directive and will determine how insurance is sold across the EU.
“Europe’s insurers welcome the ECON committee’s call for the European Commission to delay the application of the IDD,” said Michaela Koller, director general of Europe’s re/insurance federation Insurance Europe.
“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.”
Jon Sperrin, head of financial services regulatory for Grant Thornton UK LLP, added: “A delay in implementation would be a proportionate and practical response.
“Market participants have significant concerns about the current timeframe, which requires implementation by 23 February 2018. Ultimately the IDD is designed to deliver enhanced outcomes for consumers and a level playing field across the market. An extension would give insurance firms and policymakers the time and certainty needed to get this right. And there is an awful lot of work that needs to be done.
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