Bupa Global update: Insurance Distribution Directive
The Insurance Distribution Directive (IDD) is a new EU wide directive aimed at creating a ‘level playing field’ for Insurance distribution, replacing the current Insurance Mediation Directive (2002/92/EC).
The aim of this new directive is to:
- ensure consistent standards for intermediaries
- significantly raise conduct standards
- improve consumer protection
- drive effective competition
What are the key requirements of the IDD?
- Documentation – the introduction of a new policy summary, the ‘Insurance Product Information Document’ (IPID), to help individual customers understand what’s included in their cover.
- Training and competence - ensuring professional competency of staff advising on and selling insurance products, including an ongoing commitment to training on the products.
- Product governance - ensuring that documents are reviewed periodically and that every product has a clear target market.
- Conflicts of interest - a higher level of management of conflicts of interest.
How will this impact the sales journey?
To meet the new IDD requirements Bupa Global implemented the initial changes to its quote and renewal documentation on the 19th February 2018. IPIDs have been produced for the majority of our Individual IPMI products in line with this date. All remaining IPMI IPIDs and travel IPIDs will be available by 1st October 2018.
The IPID will be provided as part of our standard service to you and will be in addition to the current documentation.
Bupa Global is continuing to develop and deliver the requirements of the IDD ahead of the final implementation date of 1st October 2018.
Please click here for the FCA consultation paper on the implementation of the IDD.
If you have any questions or require further information please speak to your Bupa Global representative.