The Insurance Distribution Directive (“Directive”), which entered into force on 23 February 2016, will supersede the current Insurance Mediation Directive (“IMD”). The Directive seeks to:

• ensure a minimum harmonization of the laws of the various European countries, without precluding Member States from maintaining or introducing more stringent provisions in order to protect customers;
• improve retail insurance regulation by creating a level playing field between participants in insurance sales in order to improve consumer protection, market integration and competition;
• extend the scope of application to all distribution channels and establish the conditions necessary for fair competition between distributors of insurance products;
• guarantee that consumers benefit from the same level of protection despite the difference in distribution channels;
• strengthen policyholder protection, particularly with regards to life insurance products withan investment element, and enhance the suitability and objectiveness of the insurance advice provided; and
• strengthen the administrative sanctions and measures to be applied in the event of a breach of key provisions.