Insurance Distribution Directive | Financial Services


Insurance Distribution Directive

European insurers need to overcome new cross-border challenges

The European Council has agreed to push back the transposition deadline and application date of the new rules on insurance distribution. The changes, which were due to come into force on February 23, are now delayed to July 1, 2018. The application date for the new regulations is October 1, 2018.

The various competent authorities across Europe are almost all in the process of finalizing their legislative drafts. Nevertheless, our research has shown that they are not all adopting the same approach and at the same speed in their efforts to finalize the transposition, leading to potential discrepancies in the expected transposition date across Europe. In Germany, for instance, IDD-related legal amendments were passed months ago, making delayed amendments unlikely.

IDD requirements

The same goes for the efforts continuing in 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 or even successfully completed large implementation programs to analyze and identify gaps in relation to 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 analyze and to define the appropriate actions.

The impact of IDD

In the following pages we present the results of an EMEA IDD analysis performed just before the summer. We collected information on the IDD transposition and expected challenges and effects 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 business strategy, and the (operational) organization of insurance companies and intermediaries. Firms that have just started will need a structured implementation approach in order to meet the deadline.

Your Contacts

Michael Schilke
Director | FS Financial & Risk Operations

Alexander Weigelt
Manager | Insurance Operations