Insurance Distribution Directive

(Directive (EU) 2016/97)

The Insurance Distribution Directive (IDD) is a new EU directive which creates a minimum legislative framework for the distribution of insurance and reinsurance products within the EU.  It aims to facilitate market integration and enhance consumer protection and comes into force from 1st October 2018.

There are several key changes as a result of IDD, affecting product approval and governance as well as professional development and remuneration disclosures. Further information is available here.  

  • Product name, key features and version number
  • The date that the Product to which the Charter corresponds was manufactured or materially amended
  • Specifics on the Target Market for the product
  • All relevant risks to that Target Market
  • The distribution strategy of the Product and how this compliments the Target Market
  • Details of any event that could materially affect the potential risk to the identified Target Market
  • Definitions of the Product’s Negative Target Market
  • Quantitative thresholds for sales and distribution outside of the documented Target Market and the effect of these on the Distributor
  • Where the Product is offered together with an ancillary product or service which is not insurance as part of a package or the same agreement, the Product Charter shall indicate whether it is possible to buy the different components separately with Allianz Care.
  • The need for the Distributor to report to Allianz Care on a 6 monthly basis, any sales of the product outside of the Target Market as defined within the Product Charter.

For New Products:

  • A copy, or link to a copy, of the applicable Insurance Product Information Document (IPID);

For Restructured Products

  • A copy, or link to a copy, of the amended Insurance Product Information Document (IPID); or
  • Confirmation that any amendments to the Product have had no effect on the accuracy and appropriateness of the current Insurance Product Information Document (IPID)

An updated Charter will be provided when new Products are introduced or when there are material changes to the design of a Product dictates.  It is not intended that the Product Charters are shared with Customers.

Each Product manufactured by Allianz Care that is distributed within the EU from 1st October 2018 must be supported by an Insurance Product Information Document (IPID). Distributors of our products within the EU are required, prior to the conclusion of a contract, to provide each consumer with the relevant Insurance Product Information Document to allow the customer to make an informed decision. The Insurance Product Information Document must be provided to the customer free of charge. 

Where an EU Member State requires so, the Distributor must also provide the relevant Insurance Product Information Document to Commercial Customers. Where such action is not required by that EU Member State, our Distributors are under no obligation to provide an Insurance Product Information Document to Commercial Customers.

In addition to the above, Allianz Care are obliged to notify all our Distributors that we have Product Oversight and Governance processes in place to oversee the design, approval and periodic review of our Products.

Our Product Oversight and Governance Process:

  • Formalises the approval of new Product developments and material changes to existing Products,
  • Identifies the target market and negative target market for these Products,
  • Tests customer understanding through independent channels
  • Monitors the performance of the Product via qualitative and quantitative means.

All Allianz Care Products are periodically reviewed following their introduction to the market in order to assess their ongoing appropriateness and identify whether design changes to the Product are required.