The Insurance Distribution Directive (IDD)

23 August 2018

The Insurance Distribution Directive (IDD) is a European wide harmonising piece of regulation designed to enhance consumer protection across the European Union (EU). The upcoming changes will equally impact all insurance brokers across the EU.

Many of the changes extend UK standards to other parts of the EU; as a result the majority of the changes are low impact. Below is a summary of the key proposed changes that will have an impact on how JLT Specialty Limited’s (JLTS) Appointed Representatives (ARs) conduct business and the current work in progress from a JLTS perspective.

Summary of key proposed changes (Effective 1st October 2018)

1. ARs will need to complete a minimum of 15 hours of continuing professional development (CPD) over a 12-month period.

‘Relevant employees’, i.e. those directly involved in the insurance distribution and those responsible for the distribution, need to complete a minimum of 15 hours of CPD in a 12-month period.

2. ARs must provide the customer with information on the ‘nature’ and the ‘basis’ of their remuneration. The nature being the type of remuneration i.e. commission and basis being the source i.e. from the insurer and included in the premium.

3. Insurance product information documents (IPIDs) must now be provided to consumers. IPIDs are essentially a key fact sheet and must be provided to all consumers. We will provide you with the IPID and it is your responsibility to communicate this to the client.

Graph of Changes to the EU regulation to enhance customer protection

For further information, please contact Penny Jepson, Senior Partner on +44 (0)120 2446 412 or email:



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