Directive (EU) 2016/97 (the Insurance Distribution Directive or "IDD") regulates the way insurance products are designed and sold both by insurance intermediaries and directly by insurance undertakings.
It lays down the information that should be given to consumers before they sign an insurance contract; it imposes certain conduct of business and transparency rules on distributors; it clarifies procedures and rules for cross-border business and it contains rules for the supervision and sanctioning of insurance distributors in case they breach the provisions of the Directive.
The rules apply to the sale of all insurance products. However, more prescriptive rules apply to those distributors that sell insurance products that have an investment element such as unit-linked life insurance contracts.
EIOPA submitted technical advice to the European Commission on 1 February 2017 covering some detailed conduct of business requirements. The Commission has subsequently adopted two Delegated Regulations covering:
- Product oversight and governance requirements for insurance undertakings and insurance distributors; and
- Information requirements and conduct of business rules applicable to the distribution of insurance-based investment products (IBIPs).
EIOPA also submitted to the Commission on 7 February 2017, draft Implementing Technical Standards including a template, for the Insurance Product Information Document, or IPID, following a
consumer testing exercise. The Commission has subsequently published an Implementing Regulation laying down a standardised presentation format for the IPID. EIOPA has also worked with the European Commission to develop an editable version of the IPID template in all official languages of the EU, which can be accessed on
EIOPA has also issued Guidelines in October 2017, on insurance-based investment products that incorporate a structure which makes it difficult for the customer to understand the risks involved and published in December a Q&A to explain the conditions under which a comprehension alert would be included in the Key Information Document (KID) for an IBIP.