IDD: European insurance's big bang

Author: IFLR Correspondent | Published: 7 Feb 2019

The EU’s landmark Insurance Distribution Directive (IDD) changes the regime applicable to French insurance and reinsurance brokers.

Gabriel Bernardino, chairman of the European Insurance and Occupational Pensions Authority (Eiopa) said in 2017: "[IDD] is a substantial step forward in promoting a framework for a better governance, suitability and accessibility of insurance products for consumers across the internal market."

Almost 13 years (December 2005 to October 2018) separate the entry into force of the Insurance Mediation Directive’s (IMD) provisions and the transposition into French law of the IDD.

A period of almost 13 years also separates the creation of the French insurance and reinsurance brokers’ (IRB) regime and the existing insurance distributors’ regime. Indeed, the IDD helped foster beneficial harmonisation between insurance intermediaries and insurance undertakings when distributing insurance-based investment products, in particular unifying the regulatory framework for commercial practices in the insurance sector. The IDD reinforces the previously...