Försäkringsdistributionsdirektivet

The Försäkringsdistributionsdirektivet, often translated as the Insurance Distribution Directive (IDD), is a European Union directive that governs the distribution of insurance products. Its primary aim is to enhance consumer protection and ensure a fair and transparent insurance market across member states. The directive sets out requirements for all insurance distributors, including insurance intermediaries, insurance companies, and ancillary insurance distributors.

Key provisions of the IDD include enhanced disclosure obligations, ensuring that customers receive clear and understandable information about insurance products and the distributors themselves. This includes information about the distributor's professional status, remuneration, and any potential conflicts of interest. The directive also introduces rules regarding professional requirements for insurance distributors, emphasizing the need for adequate knowledge, skills, and professional conduct. This aims to ensure that distributors are competent to advise customers on their insurance needs.

Furthermore, the IDD strengthens requirements for product oversight and governance, obliging manufacturers and distributors to ensure that insurance products are designed to meet the needs of an identified target market and are distributed accordingly. It also addresses conflicts of interest, requiring distributors to manage them in the best interests of their customers. The directive applies to all types of insurance, including life and non-life insurance, and aims to create a level playing field for all distributors operating within the EU. National competent authorities are responsible for supervising and enforcing the directive within their respective member states.