Press release
Transposition of the Insurance Distribution Directive (IDD)
Published on
Last updated on
Published on
Last updated on
The European Union (Insurance Distribution) Regulations 2018 were signed by the Minister on 27 June 2018. This fulfils Ireland’s requirement to transpose the Insurance Distribution Directive, or “IDD” into national law ahead of the transposition deadline of 1 July 2018.
The Minister for Finance and Public Expenditure & Reform, Mr Paschal Donohoe T.D., welcomed the transposition of IDD into national law. The Minister said:
“The Insurance Distribution Directive regulates the way insurance products are sold in the EU. This transposition of IDD into national law updates existing law and will enhance the protection for consumers and retail investors buying insurance products in Ireland”.
The Minister of State for Financial Services and Insurance, Mr. Michael D’Arcy T.D., also welcomed the transposition of the Directive stating that
“The Insurance Distribution Directive, will benefit consumers and retail investors buying insurance products through greater transparency in the price and costs of insurance products. It is anticipated that the revised rules will lead to expanded business opportunities for insurance distributors, including greater options for cross-border sales.”
ENDS
The Insurance Distribution Directive (Directive (EU) 2016/97), or “IDD”, establishes requirements in respect of insurance and reinsurance distribution in the EU.
IDD entered into force in February 2016 and must be transposed into Irish law by 1 July 2018. Insurance distributors must comply with the provisions of the Directive from 1 October 2018. IDD replaces the Insurance Mediation Directive which currently regulates point of sale insurance products and has been in place since 2005. IDD aims to further enhance consumer protection and ensure a level playing field by extending the scope of the directive to include all sales of insurance products. IDD seeks to identify and mitigate conflicts of interest in particular in the area of commissions, and strengthen administrative sanctions.