The Insurance Distribution Directive (IDD) will apply to MGAs, brokers, aggregators and insurers alike. Ahead of it becoming UK law within the next 11 months, our partner Sara Ager writes in Insurance Day on how the new rules - including those relating to organisational requirements, professional development, conduct of business and disclosure - could prove challenging and place a cost burden on businesses.
Ensuring all personal have both the knowledge and ability to perform their duties puts the focus squarely on training and professional development. In the struggle to win back customer confidence, our reputation and professional standing we need to provide staff with continual professional training and development. For smaller organisations particularly, the costs could be huge and the training requirements point to a primary role for Chartered Insurance Institute.
Disclosure is the topic on everyone’s list. The IDD will bring change, with intermediaries having to provide consumers with information on the nature and basis of remuneration, employee remuneration for direct insurance contract sales and, for the first time, disclosure on voting rights or capital held in an insurer or vice versa.
All firms covered by the new regime need to be ready for February 2018, whatever their size. But it’s not too late to have your say on the FCA plans as you have until 5 June 2017 to respond to their IDD consultation.
If you are a subscriber to Insurance Day you can read the full article at https://www.insuranceday.com/news_analysis/special_reports/size-does-not-matter-when-it-comes-to-the-idd.htm