“This directive is a significant piece of legislation with implications for the insurance industry as a whole … and where domestic provisions already exist we will seek to minimise the disruption to UK firms. As well as encouraging competition between insurance intermediaries, this directive will continue to ensure protection for insurance customers.”

Christopher Woolard,
Executive Director of Strategy and Competition, FCA

On 1^st October 2018, the Insurance Distribution Directive (IDD) replaced the 17 year old Insurance Mediation Directive (IMD). Whilst IMD only applied to insurance intermediaries, IDD embraces all those who conduct insurance distribution to customers – i.e. insurers, reinsurers, insurance brokers and firms such as banks, or retailers, who provide insurance alongside their primary business and whose customers range from individual consumers to large multinational organisations. This effectively addresses the perceived imbalance that existed between direct and intermediated sales.

The Course Agenda

The background to IDD

• Explain how and why IDD came about
• Explore IDD’s implications for UK insurance business – life insurance, general insurance and Ancillary Insurance Intermediaries

Professional, organisational and prudential requirements

• Understand the ‘staff knowledge and competence’ requirements (inc. mandatory CPD)
• Examine the minimum PII cover levels
• Describe the restriction on the use of intermediaries
• Explain changes to the application of CASS 5 rules
• Consider the management of conflicts of interest in line with IDD requirements

Conduct of business requirements

• Explain the IDD General Principles
• Describe the required pre-contract disclosures
• Understand the disclosures relating to conflicts of interest, transparency and remuneration of firms
• Explain the means of providing information including the definition of durable medium
• Understand the ICOBS standards relating to advised and non-advised sales
• Describe the rule amendments relating to cross-selling
• Explain the requirement for and use of the Insurance Product Information Document (IPID)

Ancillary insurance intermediaries (AII)

• Understand this category of insurance intermediary
• Explain the difference between ‘In Scope AIIs’ and ‘Out of Scope AIIs’
• Describe the requirements relating to ‘Connected Travel Insurance (CTI) providers