Insurance Distribution Directive
Is your business complying with the new requirements?
The Insurance Distribution Directive (IDD), which came into effect at the beginning of October, is one of the most significant changes in recent years to the way in which insurance is regulated. Its impact is being felt across all main business areas – sales, systems and controls, training and competence, product distribution and manufacturing.
Our IDD Support
We have put together a series of focused IDD days specifically designed to help firms ensure they have fully understood all the impacts of the changes on their business and are now meeting the new requirements.
IDD overall compliance verification day
To support firms in the run-up to IDD, we mapped the rule changes and identified each of the key business areas impacted.
Based on this understanding and knowledge, we have developed working papers to drive an IDD verification day which will provide an independent assessment of your compliance with the new requirements.
We will spend a day on-site with you working through the question set, recording our observations, identifying any areas where we consider there may still be gaps and setting out our recommended actions to address these.
If you feel you need additional support to address any gaps which may be identified we can provide this too – either remotely or on-site depending on your needs.
IDD sales compliance verification day
The IDD has a particular impact on the sales process, so we have also developed a specific assessment day to assess compliance in this key area. Among other issues we have considered the impacts for frontline staff, quality monitoring, how to meet the customer’s best interest requirements, when information should be provided, the IPID, etc.
We will spend a day on-site going through the various elements with you, including time with frontline staff if applicable, to help ensure that your sales process and staff knowledge is up to date. Using our IDD sales process question set we will work with you to review your processes and make suggestions and recommendations where we think there may be any gaps or any improvements may be advisable.
Sales file audits
Either following on from the sales verification day or as a stand-alone measure of compliance, we can provide an onsite sales file checking service. This will give you an independent, third line of defence review of how well your staff and systems are complying with FCA sales process requirements generally and, in particular, the changes brought about by the IDD.
This can be a one-off process or we can provide monthly or quarterly reviews, taking a risk-based approach, until such time as you are confident that your post-IDD sales process is fully embedded.
IDD PROD verification day
For firms which are product manufactures or co-manufacturers, the impact of PROD (Product Intervention and Product Governance Sourcebook) has been significant; there are also specific requirements even for those firms which act only as distributors.
We have found that a number of firms which offer schemes or operate under delegated authorises/binders may not have clarity about whether or not they are acting as co-manufacturers and what the implications of this may be for their business.
We will spend a day on-site looking at your business model to verify where you act as a manufacture, co-manufacture or distributor or a combination of these roles. Based on this assessment we will look at how well your business is meeting the new requirements and determine whether there are any gaps in process or documentation or any areas which may need strengthening. We will also look at the arrangements you have in place to monitor for ongoing compliance with the new requirements.
How can we help you?
For more details about our Insurance Distribution Directive (IDD) verification days or to discuss assistance with understanding and meeting the IDD generally, call our expert team today on 01925 767503 or email us at email@example.com.