Insurance Distribution Directive
Less than 6 months to get compliant
With less than six months to go before the Insurance Distribution Directive becomes applicable, the time seems right to shed a light on where the European insurance industry stands in getting ready to become IDD compliant by the deadline of 23 February 2018.
Outcome of the IDD analysis
In most European countries, the sector is still awaiting the final transposition text. The different competent authorities are almost all in the process of drafting and consulting the sector. Nevertheless, our research has shown that they are not all adopting the same approach and speed in their efforts to finalise the transposition, leading to a potential discrepancy in the expected transposition date throughout Europe.
The same goes for the efforts ongoing within the insurance industry to implement the diverse set of IDD requirements. We understand that some countries and firms are moving ahead and have put in place large implementation programs to analyse and identify gaps against the existing regulation, and determine the impact on their businesses and the related measures and actions to take. At the same time, in other countries, the insurance sector has only just started to analyse and to define the appropriate actions.
In the enclosed brochure we provide the results of an EMEA IDD analysis performed just before the summer. We collected information on the IDD transposition and expected challenges and impacts from a number of EU countries as well as information on similar legislation in a selection of third party countries. The information was collected through our Deloitte network on an informal basis based on local market experience and expertise. Our main conclusion is that the IDD is expected to have a significant impact on the business strategy, and the (operational) organisation of insurance companies and intermediaries. Firms that have just started will need a structured implementation approach in order to reach the deadline.