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Insurance Distribution Directive
2018: a challenging year for the European insurance sector
After months of rumors of a possible delay of the IDD, the European Commission has finally, just before the Christmas break on December 20, 2017, adopted a proposal1 to delay the application date of the Insurance Distribution Directive (IDD) until 1 October 2018. The transposition date for Member States remains 23 February 2018. The proposal will need to be discussed in the Council of the European Union and the European Parliament before it can be finalised. The Commission states in its legislative proposal that, given the short timeframe, the proposal should enter into force without delay. The European Parliament invited the Commission to adopt a legislative proposal setting 1 October 2018 as the application date of the IDD. It substantiated the request by the need to give insurance undertakings and insurance distributors more time to prepare for the implementation of the IDD and the necessary technical and organisational changes to comply with the Delegated Regulations.
In the pages that follow, we provide the results of an EMEA IDD analysis performed just before the summer of 2017 and updated in December 2017. 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 informally through our Deloitte network 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) organization of insurance companies and intermediaries. Firms that have just started will need a structured implementation approach in order to reach the deadline.
Performance magazine issue 25, January 2018
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.