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ARTICLE · 06 NOVEMBER 2017

Complex Insurance-Based Investment Products (IBIP) And The Insurance Distribution Directive (IDD) – EIOPA Final Guidelines

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Following its consultation in February, the European Insurance and Occupational Pensions Authority (EIOPA) published its final guidelines on complex IBIP under the IDD (Guidance).

European UnionInsurance
Nazim Alom
Nazim Alom

Following its consultation in February, the European Insurance and Occupational Pensions Authority (EIOPA) published its final guidelines on complex IBIP under the IDD (Guidance). The Guidelines have been developed pursuant to Articles 30(7) and (8) of IDD and apply to execution-only sales of IBIPs and are aimed at minimising the risks to consumers arising from mis-selling of products in Europe's 10 trillion funds market.

IBIPs are insurance products which offer a maturity or surrender value and which are also affected by market fluctuations. Examples include unit-linked life polices or life policies with profit sharing/participation. Execution-only sales are typically completed via telephone or online and where the insurer or insurance distributor does not provide any advice or verify the customer's knowledge of the product and the risks involved.

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