The final objective of the directive … develop and enhance their knowledge and abilities. What is the Insurance Distribution Directive (IDD)? Will Brexit affect the introduction of the IDD? By using and browsing the CII website, you consent to cookies being used in accordance with our policy. Chartered Insurance Institute42-48 High Road South Woodford LondonE18 2JP ​, Online webchat service Mon to Fri: 8am – 6pm (GMT)Telephone service Mon to Fri: 9am – 5pm (GMT), Tel: +44 (0)20 8989 8464 The Insurance Distribution Directive or IDD for short is the new European Union directive covering the sale and advice of insurance products. We are a professional body dedicated to building public trust in the insurance and financial planning profession. 12 month period. Automotive Compliance Ltd document.write(new Date().getFullYear()) Should a firm be unable to evidence their staff have achieved 15 hours of relevant CPD the FCA has a wide range of powers that can be The IDD extends minimum standards to insurance companies, and improves those minimum standards in key areas such as customer information, training and product governance. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies. It reflects the demands of wider roles in insurance, rather than the demands of the most basic role covered by the IDD, where relevant, of alternative benefits available from employers and the government (e.g. As a result, the new law will come into force in the UK on the 1 st October 2018. The EU authorities passed the law because they wanted to ‘to strengthen the confidence of customers’ in insurance. Information about Directive 2016/97/EU including date of entry into force and link to summary. The FCA has listed some examples of these kind of roles, saying: ‘The requirements will not apply to employees in ancillary roles such as HR, facilities management and IT’. minimum necessary knowledge of terms and conditions of policies offered, including ancillary risks if covered by such policies; minimum necessary knowledge of applicable laws governing the distribution of insurance products, such as consumer protection law, relevant tax law and relevant social and labour law; minimum necessary knowledge of claims handling; minimum necessary knowledge of complaints handling; minimum necessary knowledge of assessing customer needs; minimum necessary knowledge of the insurance market; minimum necessary knowledge of business ethics standards; and. In particular, MiFID II is the EU's most ambitious piece of regulatory reform in the financial services industry to date and various obligations contained in the IDD have been designed to ensure a level of consistency with it. The 35-hour CPD requirement for qualified members (Cert and above): What products are covered by the IDD training requirements? How do you undertake effectively, evidenced CDP These can take the form of accredited However, this law only covered brokers, not direct sales by insurance companies. What is CPD? As a result, the new law will come into force in the UK on the 1 st October 2018. The IDD replaces the Insurance Mediation Directive (IMD). It is mainly focused on the general insurance profession. 01452 671 570. The IDD is a law that was passed by the European Union in 2016. The IDD came into play from the 1st October 2018 and requires that insurance and reinsurance distributors, and employees of insurance and reinsurance undertakings or intermediaries, possess appropriate knowledge and ability in order to complete their tasks and perform their duties competently. evidence that their employees have accomplished 15 hours of CDP by 1st October 2019. This will then give insurance firms 7 months to comply with the final rules. The sale of insurance products in the EU is regulated by the insurance distribution directive (IDD) adopted in 2016. Insurance & Reinsurance; Highlights and horizon scanning; Horizon scanning do you have to spend 20% of the 15 hours on protection? The rules say you have to be competent in the key areas listed in question 5, but beyond that it is up to firms to decide how much time they spend on each one. Provided firms keep a log of the time spent on training, and provided the CPD is not ‘on the job’ experience, it can be unstructured – so, for example, time spent reading about money laundering requirements could count as CPD. Managers of people in these areas are also covered. No comments have been added to this article. As a result, the new law will come into force in the UK on the 1st October 2018. CII Briefing: Insurance Distribution Directive, By using and browsing the CII website, you consent to cookies being used in accordance with our, Online webchat service Mon to Fri: 8am – 6pm (GMT), Telephone service Mon to Fri: 9am – 5pm (GMT), Continuing Professional Development (CPD), Please sign in to comment on this article, Embodies good practice, rather than simply minimal compliance. What is the Insurance Distribution Directive (IDD)? 01452 671 570. As with most laws made by the European Union, there was an implementation period for the IDD. The IDD replaces the Insurance Mediation Directive (IMD) which established a common European market in insurance products. As such, the scope is broader than just the traditional insurance industry and it applies to all distributors of insurance For example, someone whose only role is to point people to a part of the office where brochures are kept would not be covered, but someone who choses which brochures a customer should go away with would be covered. VAT registration number is 946027715. Second, even if the FCA fundamental review of its handbook post-Brexit reveals some streamlining, there will be many elements of regulation that need to be retained because they either comply with international regulatory initiatives or retaining them would make it easier for businesses to operate both in the UK and the EU. All insurance products are covered by the IDD. As for the application date, the Member States had to apply the national rules from 1 st October 2018 at the latest. their duties competently. This Directive shall not affect a Member State’s law in respect of insurance and reinsurance distribution activities pursued by insurance and reinsurance undertakings or intermediaries established in a third country and operating on its territory under the principle of freedom to provide services, provided that equal treatment is guaranteed to all persons carrying out or authorised to carry out insurance and reinsurance distribution … Email: customer.serv@cii.co.uk. On 1 st October 2018, the Insurance Distribution Directive (IDD) replaced the 17 year old Insurance Mediation Directive (IMD). Financial Services Register by visiting the FCA's website What kind of staff are covered by the rules? What is the Insurance Distribution Directive (IDD)? National regulators (in our case, the FCA) must have all their rules for IDD finalised by the 22nd February. The Insurance Distribution Directive (IDD) came into effect on the 1st October 2018 and will apply to all firms carrying out life insurance and non-investment insurance business. The IDD defines 'insurance distribution' as the activities of advising on, proposing, or carrying out other work preparatory to the conclusion of contracts of insurance, of concluding such contracts, or of assisting in the administration and performance of … • The IDD introduces a new requirement for those staff sell, advise on and transact insurance contracts all If it takes more than 15 hours to maintain competence, then individuals have to spend more than 15 hours on CPD. The EU authorities have insisted that the final rules should be in place by February because they did not want national regulators to spend the time up to October tweaking their IDD legislation, because this would not have given insurance firms the certainty they needed to comply with the IDD by October. An ALL is a company or person, who, for remuneration, takes up What does this mean? FREE HEALTH CHECK 01452 671 570, Automotive Compliance Insurance Distribution Directive (IDD) & 15 hours CPD. WE KNOW YOUR BUSINESS. One of the significant requirements for IDD is the introduction of a mandatory 15 hours of CPD for all employees involved in the “distribution” of insurance products. The Insurance Distribution Directive (IDD) introduces CPD requirements (Art 10) for Insurance Distribution. CPD CPD. There already was a law regulating insurance at EU level, called the Insurance Mediation Directive (IMD), which came into force in 2005. WE TALK YOUR LANGUAGE, minimum necessary knowledge of insurance-based investment products, including terms and conditions and net premiums and, where applicable, guaranteed and non-guaranteed benefits; minimum necessary knowledge of advantages and disadvantages of different investment options for policyholders; minimum necessary knowledge of financial risks borne by policyholders; minimum necessary knowledge of policies covering life risks and other savings products; minimum necessary knowledge of organisation and benefits guaranteed by the pension system; minimum necessary knowledge of applicable laws governing the distribution of insurance products, such as consumer protection law and relevant tax law; minimum necessary knowledge of the insurance market and of the saving products market; minimum necessary knowledge of business ethics standards; minimum necessary knowledge of policies including terms, conditions, the guaranteed benefits and, where applicable, ancillary risks; minimum necessary knowledge of organisation and benefits guaranteed by the pension system of the relevant Member State; knowledge of applicable insurance contract law, consumer protection law, data protection law, anti-money laundering law and, where applicable, relevant tax law and relevant social and labour law; 2.2.2016 EN Official Journal of the European Union L 26/55.

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