IDD: The new insurance distribution paradigm
The Insurance Distribution Directive (“IDD”) is a piece of EU legislation setting out regulatory requirements for professionals manufacturing and/or selling insurance products.
As of 1 October 2018, the IDD repeals and replaces the Insurance Mediation Directive (“IMD”), which has hitherto governed the distribution of insurance products by insurance and reinsurance intermediaries such as agents and brokers. The new directive will require a broader range of professionals to comply with insurance distribution rules.
In Luxembourg, legislation transposing the IDD into national law was adopted on 10 August 2018 and will take effect from 1 October 2018.
The IDD is also supplemented by EU delegated regulations that will become immediately applicable as of 1 October 2018 without having to be further implemented into national law.
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This alert was written by Eliane Dejardin Botelho (Counsel, Capital Markets and Banking) with the collaboration of Alice Zorzénone (Associate, Capital Markets and Banking).