At first glance, two years seem to be a long time. However, the timeline for implementation shrinks rapidly if there is a lengthy wait for the publication of the national regulation. That’s why Frank Hammer, an insurance expert at the business and IT consulting firm Q_PERIOR, has come up with this list of the most important steps you need to take so you are ahead of the game with your successful project start.
1. Initialization Workshop
To successfully start fulfilling the IDD requirements, it is necessary to make a precise analysis of the initial situation. In the course of a workshop, it is possible to do the groundwork for rapid and sustainable implementation. At this stage, the focus is very much on setting down the required contents and the framework conditions. Alongside the IDD, there are other regulation projects, such as MiFID II and PRIIP regulations, that insurance companies will have to deal with in quick succession, so it is therefore necessary to identify interconnections with other regulatory projects and to adapt them to the needs of your own company. That’s why the project start should not only involve the sales force, but rather it has to involve departments across the board. In this way, you can bridge the gaps between, for example, insurance sales, IT and compliance at an early stage.
2. Preparation of Strategic Decisions
As the IDD only prescribes a minimum level of harmonization, it is possible that the stipulations may be made even stricter in the course of the member state’s regulation process. That’s why insurance companies should draw up various possible courses of action, so that they can react flexibly to any developments announced at short notice. In addition, they should give careful consideration to the medium-term and long-term consequences of these sales and distribution directives for their own enterprises. The important thing is to identify opportunities and risks at the earliest possible stage and to develop appropriate measures to take advantage of these opportunities and neutralize the risks. The deployment of appropriate technologies plays an important role here, as they can support the fulfilment of new consulting and information-provision obligations, as well as generating added value. By making use of a risk-opportunity profile, it is possible to back up and support decision-making.
3. Roadmap and Project Start
With the initialization workshop and the preparation of important strategic decisions, the prerequisites are already in place for the creation of a company-specific roadmap with clearly defined responsibilities. By using this roadmap, senior managers responsible for sales, products or IT can get a good overview of what needs to be done and can thus plan the corresponding resources. As a result, there are no further obstacles to a successful project start and on-time implementation of the IDD directives.