What is the IDD directive?

The IDD is the abbreviation for the European Insurance Distribution Directive. The IDD regulates the distribution services for insurance products. One of its main objectives is to provide a set of rules aimed at strengthening consumer protection.

The IDD contains information obligations and rules of conduct that apply to all distributors of insurance products. This brochure summarizes the main information obligations and conduct of business rules that apply to the distribution, in Belgium, of insurance products by an insurance company or an insurance intermediary. This brochure is relevant only to insurance products other than insurance-based investment products 1 .

1 A separate brochure sets out the rules that apply to the distribution of insurance-based investment products.

The insurance products covered by this brochure

This brochure is relevant only to insurance products other than insurance-based investment products. These include hospitalisation insurance, fire insurance, civil liability insurance for motor vehicles, etc.

These products are referred to as “insurance products” in this brochure.

Three overarching principles

The IDD directive requires distributors to abide by three overarching principles when distributing insurance products:

• act honestly, fairly and professionally in a way that best serves your interests; • provide you with information that is accurate, clear and not misleading. This information is meant to enable you to take informed decisions; • take account of your individual situation, and in particular of your demands and needs.

Before concluding an insurance contract (p.6)

The distributor must put you in a category of customers:

Retail customer

Professional customer

2

The distributor must ask you for certain types of information in order to determine your demands and needs. If the distributor also provides you with advice, it must offer a personalised recommendation that explains why one particular product may better fit your demands and needs.

3

The distributor must supply you with certain items of information. Examples:

• information about the distributor • information about insurance products • information about the costs and charges

• ...

Ongoing obligations for distributors (p. 16)

4

• Preventing conflicts of interest • Following the rules governing remuneration • Handling complaints and claims