General insurance intermediary Berkeley Alexander has a clear message for all brokers: Be aware of what the new Insurance Distribution Directive (IDD) will bring.
“While October still might seem a while away, the IDD will actually affect any polices you touch before then that incept or renew from the October 01 deadline,” stressed Berkeley Alexander chair Geoff Hall. “For example, renewal invitations on policies from October 01 should be invited a minimum of 21 days ahead, so renewals invited from early September will be impacted, as will quotes you are providing now on cases you know will complete in October.”
The intermediary, which is part of The Ardonagh Group, outlined some of the key rule changes in a post on its website. These include the requirement to provide consumers with a new Insurance Product Information Document, as well as a Business Policy Summary for commercial clients.
“Some key elements of the IDD continue from the existing regime, such as ensuring client communications are clear, fair, and not misleading; and that your remuneration structures don’t create conflicts of interest, ensuring you put your customer at the heart of what you do,” noted Hall. “However, there will be changes that put additional responsibilities on the adviser.
“It is now all the more important to offer as broad a choice of product range as possible and to transparently and accurately describe the GI service you offer. If in doubt, speak to your GI provider who should advise you appropriately.”