The issue of the IDD has gained increasing attention in the insurance market since the beginning of the year. According to a brief survey conducted by Q_PERIOR, 71 % of the insurance business managers surveyed assess the impact of IDD on their departments as high, 21 % as moderate, and only 8 % as low. Nevertheless, many insurers are still at the beginning of their implementation.
A total of 63 % of respondents indicated to Q_PERIOR that they were just starting with the IDD implementation or are conducting initial workshops. Only 37 % are implementing first measures. “Up to now, many insurers hesitated with the direct implementation as some details of the guideline were not clear until today’s adoption by the Federal Council”, says Uta Niendorf, Associate Partner at Q_PERIOR. “However, insurers can no longer afford to wait for additional publications of guidelines, regulations for implementation and technical standards.” After all, the core points of the IDD, such as for example the extended scope as a result of the regulation of all distribution channels or the new product release procedure (POG), have significant impacts on many company processes.
Those who had hoped for changes from the voting process of the legislative process were disappointed today. Although the obligation of double consultancy and a ban on fees for brokers is no longer an issue. However, these two aspects were no expense drivers. The negotiations even led to stricter rules in consulting and the sales of residual debt insurances. Consumers are given extended rights of revocation, which leads to additional work for agents or insurers due to the provision of revocation instructions and a product information sheet. There is also no actual relief for further training requirements. With the last change introduced, only so-called annex agents are excluded from the obligation of further training under specific conditions. The implementation therefore remains costly for all insurers.