EIOPA's 2nd Report On The Application Of The Insurance Distribution Directive (The "IDD")

Following two extensive surveys carried out with the EU national competent authorities, EIOPA issued the results of its findings on the impact of the IDD on consumers, insurance distributors and supervisory activities.

Most notably, digitalization and the growth of new distribution models continue to present risks as well as opportunities in the eyes of national competent authorities. The main challenges arose at both application stage and at supervising the IDD rules on the form and timing of disclosures in a digital context and in applying the IDD in relation to new technologies, such as digital platforms and artificial intelligence.

Concerns were also raised on the integration of sustainability factors, risks and preferences into IDD, where the application of the new sustainability rules illustrate challenges for consumers to understand the disclosures and complex concepts introduced by the new rules.