Insurance Distribution Directive (IDD)

Core duties

Distributors must act honestly, fairly and in the best interests of customers. Before conclusion, demands and needs must be identified (demands-and-needs test); where advice is given, a personalised recommendation must be substantiated. For non-life products the standardised IPID information document must be provided; remuneration and conflicts of interest must be disclosed.

Product oversight and governance (POG)

Manufacturers must define a target market for each product, test it before launch and align the distribution strategy accordingly – a product governance process that can also capture brokers as co-manufacturers.

Relation to Switzerland

The IDD does not apply directly in Switzerland; however, the revised Insurance Supervision Act adopts functionally comparable registration, training and transparency duties for intermediaries. For cross-border business into the EEA, the IDD remains decisive.