Overview IDD & GDPR Distribution Chain

An Insurance Provider or an Insurer can no longer work with brokers if the chain defined by the IDD is broken or does not exist.
The responsibility is shared and the provider/insurance company must check whether contracted brokers comply with the law (Due diligence regarding IDD/GDPR/Anti Bribery & corruption/conflict of interest/product governance/sanctions compliance/fraud or money laundering).

This is the challenge of this industry as we have known banks with a high concentration and Fintech providing technology, licensing, cloud, API, convergence.

What are the most important 10 key points to observe for all intermediaries that we are within the meaning of the law?

1/ Intermediaries must provide a greater transparency in the price and benefits of insurance products

2/ Intermediaries must understand and know what the duty of advice and information is

3/ Intermediaries must prove how they collected data & needs of the insured (clients information, census details group/life protection income etc..) and they need to encrypt (and not in one way like Mimecast system) these high sensible data (without a suitable environment with plug & play convergence and cloud, it is impossible)

4/ Intermediaries may to advise in a writing process 

(data collections/ situation/needs/analysis/recommendation, proposal) and send Insurance Product Information (IPID), Terms and Conditions, Benefits including a reasoned written response without giving rise to any conflict of interest with regard to commissions

5/ Intermediaries need to explain/insert in their writing process compulsory and legal mention (Privacy & cookies policy / Term & conditions / Data retention policy) access to the information/where are the data/Where are they secure/How you can offer data portability/How to complaint to ombudsman, regulator, the technology (Hosting) and data must be separated and differentiated in this system with API to transfer the flow of information

6/ Intermediaries must mention their fees/or percentage of commissions

7/Intermediaries need to secure data in a HIPAA cloud/or a high security server to be compliant with the GDPR & IDD

8/ Intermediaries need to offer data portability

9/ Intermediaries must train their staff with a minimum of 15 hours per year (outsourced training)

10/ Intermediaries must be aware of the distribution directive and sanctions, regulation, remote solicitation and specific rules

This is the 1st phase and this year or next year, we need to be a part of an association to be checked regularly.

Our SaaS modules matches 100% digital all these points with convergence, APIs and cloud to manage sensitive data. This is what we will show you and our platform can connect to any system in plug & play; our system also pushes a mobile application on Google Play and IOS.

At Think Insurtech, we are interested to develop and engage brokers and providers as MGA & advisors to assist them in compliance, and realize that without such system as our SaaS for brokers and without expertise, they will no longer exist in a very short time frame.

Finally, we can help to move on digitalization and you provide an end-to-end plug & play solution for sales distribution. 

Think Insurtech Team