Calls for the postponement of the Insurance Distribution Directive’s (IDD) implementation have been heeded, but apparently there’s another issue surrounding the imminent changes that needs to be addressed – the lack of awareness among brokers.
Research from Ecclesiastical Insurance found that a good percentage of brokers have very little, if any at all, knowledge of IDD. Here are the numbers:
- 66% have very little or no knowledge of the new directive.
- 27% feel well informed while 7% believe they know everything they need to.
- 35% of smaller provisional brokers are either well informed or know everything; 25%, national brokers.
- 52% of smaller brokers have received training in preparation; 35%, national brokers.
- 61% of brokers “broadly” welcome the new compliance requirements.
The new legislation – which replaces and updates the Insurance Mediation Directive and the General Insurance Directive – will be written into law next month but will not be applied until October 01, 2018, thanks to a proposal from the European Commission.
“With such a significant number of brokers saying that they don’t feel ready for the IDD, the delay to the application of the new regulation will give them more time to get better prepared,” said Chris Withers, broker distribution director at Ecclesiastical, which has partnered with compliance consultant RWA to provide more information on the changes and the implications.