IDR FAQs

IDR Frequently Asked Questions

What is the European Union (Insurance Distribution) Regulations 2018 (“IDR)”?

IDR is a European Union Regulation that, since 2018, coordinates the way insurance products are sold and sets the information given to consumers. The Insurance Distribution Regulations (IDR) 2018 is a recast of the existing Insurance Mediation Directive.

It is designed to ensure a level playing field across all participants selling insurance products. As such, the scope is broader than just the traditional insurance industry and it applies to all distributors of insurance products.

In addition to insurance brokers/financial advisors and the direct salesforces of insurance companies this also includes distributors for whom insurance is only an ancillary service such as car rental firms and airlines (with certain limited exemptions).

IDR Frequently Asked Questions

There are several benefits of IDR some of which include:

  • To regulate the way insurance products are sold and lays out the information that should be given to consumers. 
  • To level the playing field by applying the same rules to all distributors of insurance products. 
  • To raise standards of consumer protection. 
  • To harmonise national provisions across the EU. 

Consumers buying insurance products will benefit from IDR by: 

  • A simple, standardised insurance product information document (IPID) providing clearer information on insurance products, so that consumers can make a more informed decision. 
  • Rules on transparency and business conduct to help consumers avoid buying products that do not meet their needs. 

IDR came into effect on October 1st, 2018.

IDR requires an Insurance Distributor to provide pre-contract disclosure information to all new customers such as: 

  • The name and address of the company. 
  • Whether it provides advice on insurance products sold. 
  • The company’s complaints procedure. 

Our RedClick Terms of Business document has been updated to include this information for all of our customers.