Insurance Distribution Regulations

Insurance Distribution Regulations (IDR)

Find out more about the European Union Regulations on insurance distribution. 

What is IDR?

IDR it’s a European Union Regulation that, since 2018, coordinates the way insurance products are sold and sets the information given to consumers. 

At RedClick, we are committed to providing all contractual and pre-contractual information to our customers, ensuring transparent and reliable communication.

Please read our frequently asked questions and relevant documentation for more information about Insurance Distribution Regulations below. 

Do you want to learn more about IDR?

What is the European Union (Insurance Distribution) Regulations 2018 (IDR)?

The Insurance Distribution Regulations 2018 is a recast of the existing Insurance Mediation Directive and is designed to ensure a level playing field across all participants selling insurance products. 

The scope is broader than just the traditional insurance industry, and it applies to all distributors of insurance products. 

In addition to insurance brokers / financial advisors and the direct salesforces of insurance companies, this also includes distributors for whom insurance is only an ancillary service, such as car rental firms and airlines (with certain limited exemptions). 

What are the benefits of IDR?

There are a number of benefits of IDR, some of which include: 

  1. To regulate the way insurance products are sold and it lays out the information that should be given to consumers;
  2. To level the playing field by applying the same rules to all distributors of insurance products;
  3. To raise standards of consumer protection;
  4. To harmonise national provisions across the EU. 

What does this mean for me as a RedClick customer?

Consumers buying insurance products will benefit from IDR by:

  1. A simple, standardised insurance product information document (IPID) providing clearer information on insurance products so that consumers can make a more informed decision;
  2. Rules on transparency and business conduct to help consumers avoid buying products that do not meet their needs.

When did it come into effect?

IDR is effective from 1st October 2018.  

What is a pre contract agreement/disclosure?

  1. IDR requires an Insurance Distributor to provide pre-contract disclosure information to all new customers, such as:
  2. The name and address of the company;
  3. Whether it provides advice on insurance products sold;
  4. The company's complaints procedure. 

Please read RedClick’s terms of business document. It was updated to include all this information for our customers.

What is an Insurance Product Information Document (IPID)?

The IDR requires insurance distributors to provide all customers with product information in the form of a product information document. This document is intended to enable customers to make an informed decision about a non-life insurance product before they decide to buy it.

RedClick as a manufacturer of insurance products, is responsible for providing you with a Product Information Document before you purchase insurance from us.

In summary:

  1. An IPID must be issued to a customer before the conclusion of a contract;
  2. The IPID is a generic standalone document across the EU so the template is prescriptive and cannot be amended by an insurance distributor;
  3. All our IPIDs will be available here.  

What are the penalties for non-compliance?

There are fines up to €5 million or up to 5% of total annual turnover or twice the amount of profits gained from the breach. 

 

Get access to all the IDR documentation you need here