IDD deadline push-back welcomed by the market

Insurers have welcomed the delay to the Insurance Distribution Directive (IDD), following the European Commission’s announcement that it wants to push back the deadline to 1 October 2018.

It had been due to come into force on 23 February.

ABI director of regulation, Hugh Savill commented: “The ABI is pleased that the College of Commissioners has decided to propose a delay to the IDD to 1 October following pragmatic recommendations of the European Parliament and Council. This will ensure that insurers have the necessary time to implement the Directive.”

Savill continued: “It is now crucial that the delay enters into law as soon as possible to give insurers the necessary certainty in the complex implementation process.”

Lloyd’s Market Association (LMA) head of regulatory affairs, Steve Morrell greeted the delay, as the previous date was “unworkable” with the FCA still consulting on the final rules.

Morrell added: “This delay should provide the industry with the time it needs to comply fully with the new requirements.”