The European Commission has adopted implementing rules for the Insurance Product Information Document (IPID) that will accompany non-life insurance policies starting on February 23, 2018.
According to the Commission, the new rules will help consumers get all the information they need in order to make an informed decision when buying insurance products for their house, vehicle, or trips. Under the Regulation on Key Information Documents for Packaged Retail and Insurance-based Investment Products (PRIIPs), this type of key information document already exists for life insurance policies and other investment products.
The rules, laid down in the form of an implementing technical standard, are part of the Insurance Distribution Directive (IDD), which aims to create a level playing field between insurance distributors across the European Union.
“It will guarantee that customers get the same standards of choice and service when buying insurance, regardless of the Member
State in which the insurance was bought,” said the Commission.
The IDD – an expansion of the insurance mediation directive (IMD) – will also ensure appropriate standards of transparency by setting out the necessary information to be provided to consumers before they sign up to an insurance contract.
The IMD only applies to brokers and other insurance intermediaries, while the new legal framework applicable next year covers all sellers of insurance products – including firms that sell directly to consumers.
Further implementing rules for the IDD are currently under public consultation as part of the Commission’s Better Regulation portal until August 17. They will be adopted in the coming weeks. These rules cover product oversight and governance for all insurance products, as well as various conduct of business rules for life insurance products.
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