The Insurance Distribution Directive – time to plug any gaps

Though the directive is now in force, some firms are struggling with the more prescriptive product governance requirements as well as with handling conflicts of interest. Umar Mohamad provides pointers for ensuring compliance.

Umar Mohamad is a consultant at Bovill, who works with a range of clients on governance and conduct-related projects and supports insurance clients on various regulatory advisory matters. Contact him onumohamad@bovill.com.

The Insurance Distribution Directive, an updated framework for those involved in insurance activities, went live for firms on 1 October 2018. IDD brings new reporting, disclosure and organisational obligations for those within its scope. With just a few exceptions, that scope includes virtually any organisation involved in the distribution of insurance or reinsurance, from insurers and intermediaries to aggregators. The IDD also spans all types of insurance, from life assurance to motorcycle insurance.