On January 15, the European Insurance and Occupational Pensions Authority (EIOPA) released its report on the implementation of the Insurance Distribution Directive (IDD), regulating the distribution and design of insurance products in the EU since 2018.
The report examines the developments in insurance distribution over the past two years.
Compared to the previous report, EIOPA notes a further decrease in the overall number of intermediaries.
While the quality of advice and sales methods has improved in some Member States, partly due to corrective measures imposed by competent national supervisory authorities, the supervisory activity of these authorities has revealed deficiencies in the application of rules on remuneration and conflicts of interest. For example, with regard to incentives in the form of monetary payments that foster conflicts of interest.
The report that has been published by EIOPA, in accordance with Article 41 of the IDD, which requires the Authority to prepare a report every two years on the Directive’s implementation, includes a comprehensive analysis for each country, providing information on the structure of the insurance intermediaries’ market.