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European Insurance and Occupational Pensions Authority
News article15 January 2024

EIOPA publishes second Report on the application of the Insurance Distribution Directive (IDD)


The European Insurance and Occupational Pensions Authority (EIOPA) published today its second Report on the application of the IDD.

Amongst others, this Report examines:

  • any changes in the insurance intermediaries' market structure;
  • any changes in the patterns of cross-border activity;
  • the improvement of quality of advice and selling methods and the impact of the IDD on insurance intermediaries which are small and medium-sized enterprises;
  • whether competent authorities are sufficiently empowered and have adequate resources to carry out their tasks.

EIOPA’s main findings over the past two years in the context of higher inflation and rising interest rates having had a significant impact on the insurance market and customers, are the following:

  • The number of registered intermediaries has further decreased over the past two years, a trend already outlined in the previous report.
  • The quality of advice and selling methods have improved in some Member States, for example as a result of corrective measures imposed by national competent authorities (NCAs). However, in others, mystery shopping activities have revealed significant shortcomings related to advice and selling methods. For example, NCAs highlighted instances where the demands and needs of the customer have not been properly taken into account by the insurance distributor in the sales process.
  • Initial evidence from NCAs about the application of the new sustainability rules illustrate challenges for consumers to understand the disclosures and complex concepts introduced by the new rules and for insurance distributors to find appropriate training courses to acquire the necessary knowledge to understand the framework and provide suitable advice to customers.
  • Supervisory activities by national competent authorities (NCAs) have revealed shortcomings in the application of the rules on remuneration and conflicts of interest, for example in relation to monetary payments conducive to conflicts of interest. In order to address the possible detrimental impact of commissions on consumers, several NCAs have adopted measures at national level to further restrict the payment/receipt of commissions such as commission caps or enhanced disclosure rules.
  • Both EIOPA’s thematic review on bancassurance and supervisory activities undertaken by NCAs have revealed cross-selling practices potentially causing detriment to consumers. This includes, for example, the sale of mobile phone insurance together with a mobile phone.

Download Report and factsheet summarising the main findings of the report

The report also includes a detailed country-by-country analysis with information on the insurance intermediaries’ market structure. A summary of the country-by-country analysis is included in this interactive map.


Under Article 41(4) of the IDD, “EIOPA shall prepare a report on the application of this Directive” every two years. The IDD entered into application in most Member States on 1 October 2018. It sets out minimum regulatory standards across the EU insurance market and aims to enhance consumer protection. EIOPA’s first report on the application of the IDD was published in January 2022.


Publication date
15 January 2024