The global relevance of the EU single market on Insurance Distribution Directive (IDD)

Abstract

The amount of insurance premiums collected within the European Union ("EU") places the market among the world leaders. Although insurance regulation is still partly national, the EU's effort to introduce harmonized rules between the Member States has intensified since the financial crisis. This essay intends to highlight the global relevance assumed by the regulatory framework of the EU. The introduced rules arise from the principles established internationally and, in turn, influence these principles. Thus, the EU regulatory framework on insurance is relevant to understand the potential evolution of the international standards on insurance. The main objective of the insurance regulation and supervision of the EU is to protect the policy holders which is the focus of our analysis. Therefore,, this study examines the recent Insurance Distribution Directive ("IDD') salient features in light of the overall regulatory framework governing the insurance business in the EU. In addition, this study also tests the resilience of new rules regarding the COVID-19 pandemic and digital transformation, which were not at the core of the IDD.