IDD
IDD stands for Insurance Distribution Directive, which is a European Union directive regulating insurance product distribution. The IDD sets minimum professional standards for insurance intermediaries, such as brokers and agents, including mandatory 15 hours of annual training, as documented by YourInsurance.info.
The IDD requires insurers to provide customers with an Insurance Product Information Document (IPID) before sale; for example, auto and travel policies must include this summary. The IDD mandates disclosure of remuneration structures by distributors like Marsh or Aon to ensure transparency.
Under the IDD, firms must act honestly, fairly, and professionally in accordance with their clients’ best interests–this applies to all life and non-life insurance products. The IDD imposes rules on cross-selling practices; for instance, bundling home insurance with mortgages must not mislead consumers.
The IDD enforces complaint handling procedures that require acknowledgment within 10 business days and resolution within eight weeks across EU member states such as Germany or France. The IDD applies to both online platforms like Check24.De and traditional brick-and-mortar agencies distributing insurance products in the EU market.
What is the Insurance Distribution Directive?
The Insurance Distribution Directive (IDD) is an EU-wide legal directive that sets out harmonised requirements for insurance product distribution. It requires all firms involved in the distribution of insurance products, including brokers and intermediaries, to demonstrate certain minimum standards when providing services. These standards include appropriate qualifications and professional competence; effective pre-contractual disclosure of information;…
See also IDD therapy, and Identity fraud protection.