EIOPA publishes report on the application of the Insurance Distribution Directive


The European Insurance and Occupational Pensions Authority (EIOPA) today published its first report on the application of the Insurance Distribution Directive (IDD), which governs the design and distribution of insurance products in the European Union.

Among other things, this report examines:

  • any change in the structure of the insurance intermediary market;

  • any changes in cross-border business models;

  • improving the quality of advice and sales methods and the impact of DLI on insurance intermediaries such as small and medium-sized enterprises; and

  • whether the competent authorities are sufficiently empowered and have adequate resources to carry out their tasks.

The main conclusions of EIOPA are as follows:

  • Despite the limitations in terms of evidence and experience on the impact of DLI on the quality of advice and sales methods, DLI has generally had a positive impact on the way insurance is distributed to consumers. . Nevertheless, EIOPA has identified some difficulties in the application of the requirements and needs test and continues to raise concerns regarding the sale of unit-linked life insurance products and mortgage and protection insurance policies. consumer credit.

  • A decrease in the number of registered intermediaries occurred during the period 2016-2020, but the number of intermediaries holding passports to carry out cross-border activities increased in most Member States during the same period. period. Insurance distributors have encountered difficulties in enforcing, and National Competent Authorities (NCAs) in overseeing, IDD rules on digital disclosures due to a lack of additional guidance. For example, DLI requires, by default, that some disclosures be made to consumers on paper and this rule has failed to keep pace with digital developments. In EIOPA’s view, not all NCAs have sufficient powers to effectively exercise corporate oversight. In particular, some NCAs lack intermediate powers between adequate corrective measures and product intervention powers. In addition, several NCAs would like to carry out mystery shopping activities, but are not entitled to carry out such activities.

download report

download the appendices

The report also includes a detailed country-by-country analysis for publication.


According to Article 41 (4) of the DLI, “EIOPA shall prepare a report on the application of this Directive” every two years. The DLI entered into force in most Member States on October 1, 2018. It sets minimum regulatory standards across the EU insurance market and aims to improve consumer protection.


EIOPA – European Insurance and Occupational Pensions Authority published this content on 06 January 2022 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 06 January 2022 05:17:02 PM UTC.


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