The aim of this EU legislation is to enhance consumer protection when buying insurance and to support competition between insurance distributors. These can be accessed on the European Commission website: 1. in England and Wales with company number 6741798 at the registered address of Middleborough The Factory Can it just be reading? People in generic roles that are same for insurance and non-insurance companies are not covered by the rules. Here we take a look at the Insurance Distribution Directive and what it means to businesses.As you know, the Insurance Distribution Directive (IDD) came into force on 1 st October 2018 and replaced the Insurance Mediation Directive (IMD). As a result, the new law will come into force in the UK on the 1st October 2018. It came into force on 23 February 2016 and had to be implemented into the national laws of the EU Member States by 1 st July 2018. Drive Revenue, One of the significant requirements for IDD is the introduction of a mandatory 15 hours of CPD for all employees involved in the “distribution” of insurance products. How do you undertake effectively, evidenced CDP CPD CPD. The IDD (level 1 text) introduces new rules on insurance distribution. As for the application date, the Member States had to apply the national rules from 1 st October 2018 at the latest. CPD combines a variety of different methodologies to apply learning and skills acquisition. VAT registration number is 946027715. What does this mean? 3.9 A small number of respondents argued … By using and browsing the CII website, you consent to cookies being used in accordance with our policy. Firms can comply before then if they want to, but only have to after the 1/10/18. Article 10 of the IDD introduced explicit professional and organisational stipulations including a formal minimum requirement of 15 hours’ CPD for staff involved in insurance distribution. Are there any rules about how much time you have to spend on each area – e.g. The definition of ‘distribution’ is wide, and includes people working in claims as well as people doing front line selling roles. https://register.fca.org.uk/s The Insurance Distribution Directive enters into force in early 2018 (23 February). It does not just apply to sales staff. The IDD is a law that was passed by the European Union in 2016. The FCA's Senior Managers and Certification Regime for insurerswill change the way individuals working within FCA-regulated entities are monitored and comes into force o… Cookie Policy. The Insurance Distribution Directive (IDD) is aimed at, protection advisers, general insurance brokers, general insurance managing agents, financial advisers; pretty much everyone involved in the distribution of insurance products are affected. As with most laws made by the European Union, there was an implementation period for the IDD. All rights reserved. Why do I still have to do 35 hours CPD to remain a qualified member of the CII, when the regulator only asks for 15 hours? I’ve heard that regulators still had to put IDD rules into place in February? The rules say you have to be competent in the key areas listed in question 5, but beyond that it is up to firms to decide how much time they spend on each one. It is mainly focused on the general insurance profession. 12 month period. Financial Services Register by visiting the FCA's website Reduce Risk The Insurance Distribution Directive (IDD) Level: Introduction Duration: 90 minutes CII CPD Hours: 90 minutes Since October 2018 anyone selling insurance needs has been required to be fully compliant with the rules set out within the Insurance Distribution Directive (IDD). Information about Directive 2016/97/EU on insurance distribution. only to frontline sales staff but also to those within a firms management structure who have a responsibility for a firms insurance The IDD only covers the European Union, including the UK. Yes, it was originally supposed to come in on the 22nd February 2018, but it got delayed until October. The final objective of the directive … CALL US FOR A Most people who don’t work for financial services firms are not covered by the 15-hour rule – for example, someone who worked for a furniture showroom and sold a warranty with the furniture would not be caught. The 35-hour CPD requirement for qualified members (Cert and above): What products are covered by the IDD training requirements? Whilst IMD only applied to insurance intermediaries, IDD embraces all those who conduct insurance distribution to customers – i.e. The 15-hour requirement is meant as a minimum for anyone involved in ‘insurance distribution’. Insurance & Reinsurance; Highlights and horizon scanning; Horizon scanning The IDD defines 'insurance distribution' as the activities of advising on, proposing, or carrying out other work preparatory to the conclusion of contracts of insurance, of concluding such contracts, or of assisting in the administration and performance of … and individuals who breach the rules and ultimately withdrawing a firm’s authorisation. If it takes more than 15 hours to maintain competence, then individuals have to spend more than 15 hours on CPD. No. It is up to firms to interpret what the lists mean. It is mainly focused on the general insurance profession. The IDD applies to insurers, insurance intermediaries, price comparison websites/aggregators and ancillary insurance intermediaries. What is the Insurance Distribution Directive (IDD)? The IDD directive has three lists of subjects that the IDD must cover: general insurance, life insurance and insurance-based investment products. In these cases, the initial assumption is that they will be covered, unless they can show that they have no judgement at all that needs some insurance knowledge. The CPD year Insurance Distribution Directive implementation – Feedback to CP17/7 and near-final rules questioned whether CPD is an effective tool at all and argued that greater discretion should be given to firms to determine training needs. The FCA has listed some examples of these kind of roles, saying: ‘The requirements will not apply to employees in ancillary roles such as HR, facilities management and IT’. This requirement applies not WE KNOW YOUR BUSINESS. and reinsurance undertakings or intermediaries, possess appropriate knowledge and ability in order to complete their tasks and perform Information about Directive 2016/97/EU including date of entry into force and link to summary. The IDD came into play from the 1st October 2018 and requires that insurance and reinsurance distributors, and employees of insurance Automotive Compliance Ltd is a company registered The Insurance Distribution Directive (IDD) - this is a must for anyone working in insurance distribution which is almost everyone employed by an insurer, broker, loss adjuster or IFA. This information can be checked on the As a result, the new law will come into force in the UK on the 1 st October 2018. The CPD requirement covers employees that are: Directly involved in the carrying on of the firm’s insurance distribution activities, Within the management structure responsible for the firm’s insurance distribution activities, or; Responsible for the supervision of a relevant employee acting in the capacity as set out in (1). This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Continuing Professional Development. The Insurance Distribution Directive enters into force in early 2018 (23 February). What is the Insurance Distribution Directive (IDD)? Our Financial Services Register number is 497010. The EU authorities passed the law because they wanted to ‘to strengthen the confidence of customers’ in insurance. The IDD is a minimum harmonising directive, which can be accessed in the Official Journal of the European Union: 1. The EU Council has delayed the application of the new rules to 1 October 2018. The Insurance Distribution Directive (IDD) law was passed by the European Union in 2016.