The Insurance Mediation Directive (IMD), implemented in 2005, was intended to create a single market for the sale of insurance products. It quickly became apparent to the European Commission and others that the IMD was something of a failure and plans to revise the directive were underway by 2008. Described in the Commission’s consultation as dense, legalistic and jargon-ridden, the IMD fell short in terms of drafting quality and has resulted in a lack of harmonisation of regimes across the Member States.

In July 2012, the Commission published a draft of the directive that will replace the IMD. The revised directive, now known as the Insurance Distribution Directive (IDD), makes a number of changes to the regulation of sales of insurance products in the EU. The minimum standards of the IMD have been raised significantly in line with legislative efforts to increase consumer protection following the financial crisis. The objectives for the IDD are, among others, to expand the scope of insurance mediation to include direct insurers, as well as intermediaries, and manage and mitigate conflicts of interest. Under the current proposals, Member States will be required to transpose the new rules into national law by 2013, with IMD2 expected to come into force in 2015.

In this section of our technical resource we include articles tracking the development of the IDD from the first proposal for a revised Directive through to the final compromise text which was published in July 2015.

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