TWG urge dealers to keep pace with IDD
A proposal to delay the implementation date of new legislation that affects how firms sell insurance products does not mean that dealers should relax their steps to comply, says The Warranty Group, Europe.
The Insurance Distribution Directive (IDD) remains due to come into effect on 23 February 2018. However, the European Commission has announced a proposal to push back its application date by seven months which, if approved, means firms will not be required to comply with the new rules until 1 October 2018.
The IDD is EU legislation affecting insurance distributors that aims to improve consumer protection and further harmonise how insurance distribution is regulated across Europe.
Rich Green, CEO, UK and Europe, The Warranty Group, said, ‘The proposal of an extra seven months to comply with IDD is good news for dealers, providing some extra breathing space at a busy time for new legislation.
‘In fact, not only will it allow firms to make sure that all the necessary changes are properly considered, designed and tested but another key advantage of the additional time, we believe, is that it will allow dealers to implement IDD and GDPR-compliant processes as part of the same reviews, because the timings are so similar.
‘However, in our view, it certainly does not mean that dealers can relax in their efforts to accommodate IDD. This is an important piece of legislation that has key implications for their businesses.’
Rich explained that IDD is about increasing standards across the insurance industry to ensure that customers are provided with clear and meaningful information about insurance and the firms providing it.
Rich continued, ‘We are confident that we are well-positioned to ‘walk’ our partners of all sizes through the process of IDD compliance. However, even with the proposed extension, there will still just be seven months for firms to comply, so there is a need for a concerted course of action’.