Insurers and other insurance distributors will face significant challenges while implementing the requirements of the German law transposing IDD. Impacts on distribution models, training requirements and increased duties and obligations in distribution will need to be considered.
In addition, there are a number of compliance issues, such as conflicts of interest, cross-selling and considerations regarding the commission structure. With regard to insurance products there are also new requirements, such as product oversight and governance (e.g. the definition of the target market, product approval and regular review), the draft of a standardized insurance product information document (IPID)) and the revision of insurance contract documentation regarding payment protection policies (Restschuldversicherungen).
A proper implementation is even more relevant, as the fines and other sanctions applicable in case of non-compliance have been increased, and now include new measures such as public statements.Click here for more..
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