A proposal to delay the implementation date of the Insurance Distribution Directive (IDD) does not mean dealers should relax their steps to comply, the Warranty Group has said.
The IDD aims to improve consumer protection and harmonise how insurance distribution is regulated across Europe.
Key points in the regulation include:
- Mandatory professional training requirements for staff involved in insurance distribution
- Enhanced product information and disclosure requirements to help customers make informed decisions about their insurance purchase
- Imposes new duties on insurance companies that are selling products through companies that are not authorised by the FCA
The IDD is due to come into effect on 23 February, however the European Commission has proposed to push back its application date by several months until 1 October 2018.
Rich Green, chief executive officer, UK and Europe, of Warranty Group, said: “The proposal of an extra seven months to comply with IDD is good news for dealers, providing some extra breathing space at a busy time for new legislation.
“In fact, not only will it allow firms to make sure that all the necessary changes are properly considered, designed and tested but another key advantage of the additional time, we believe, is that it will allow dealers to implement IDD and GDPR-compliant processes as part of the same reviews, because the timings are so similar.
“However, in our view, it certainly does not mean that dealers can relax in their efforts to accommodate IDD. This is an important piece of legislation that has key implications for their businesses.”
Green added that IDD is about increasing standards across the insurance industry to ensure that customers are provided with clear and meaningful information about insurance and the firms providing it.