EU Insurance Distributors Face IDD Sanctions Data for Non-Compliance

• Between 2018 and 2024, national supervisors imposed sanctions on insurance distributors under the Insurance Distribution Directive (IDD).
• EIOPA's data highlights areas where non-compliance was significant in 2024.
• Sanctions are typically targeted at individual companies or individuals but provide valuable insights into conduct and supervisory issues.

The most recent data available for 2024 highlights areas where non-compliance was significant.

Between 2018 and 2024, national supervisors across the European Economic Area (EEA) imposed sanctions on insurance distributors under the Insurance Distribution Directive (IDD). According to data from EIOPA, these sanctions were notified for various breaches of IDD provisions. The most recent data available for 2024 highlights areas where non-compliance was significant. While sanctions are typically targeted at individual companies or individuals, they provide valuable insights into conduct and supervisory issues.

The IDD requires national supervisors to notify EIOPA of any sanctions imposed on insurance distributors when these companies or individuals breach relevant provisions. This notification is crucial for maintaining transparency and ensuring that misconduct is addressed effectively. The data collected by EIOPA serves as a tool to identify areas where non-compliance is prevalent, allowing for targeted measures to be taken. However, it's essential to note that sanctions data only offers a partial perspective on conduct or supervisory issues.

Lawyers advising insurance distributors should take heed of the areas where significant non-compliance has been reported. By analyzing EIOPA's sanctions data, they can identify potential weaknesses in their clients' compliance with IDD provisions. This knowledge enables them to provide tailored guidance and support, helping their clients avoid similar issues in the future.

Lawyers should watch for areas of the IDD rules where there has been significant non-compliance by distributors, as revealed in EIOPA's sanctions data, to advise clients accordingly.

Source: Original reporting via EIOPA sanctions data