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ARTICLE · 04 DECEMBER 2017

How The IDD Will Affect Insurance-Based Investment Products

KPMG Luxembourg
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The Insurance Distribution Directive (IDD) is to insurance what MiFID is to investments.

LuxembourgFinance and Banking
Filip Oller
Filip Oller
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The Insurance Distribution Directive (IDD) is to insurance what MiFID is to investments. It repeals the directive on insurance mediation and regulates specific insurance-based investments. It must be transposed into national legislation by 23 February 2018, although a delay in when the adopted measures must be applied is currently being discussed. Notably, the directive introduces additional requirements for insurance-based investment products (IBIPs).

Besides the IDD's new requirements, the IBIP regulatory framework consists of an EU Commission delegated regulation that addresses information requirements and conduct-of-business rules for IBIP distributors. In October 2017, the European Insurance and Occupational Pensions Authority (EIOPA) issued guidelines on those IBIPs whose structures make it difficult for the customer to understand the risk involved.

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