Ecclesiastical have identified brokers as not understanding the requirements of the IDD. However, the truth is that insurers are not 100% clear either - nobody is!
Banking is ahead of this category of regulation with Mifid and Mifid II, giving a track record to learn from – so what can we learn?
•Essentially banks have seen this as a regulatory cost, rather than an opportunity to improve customer service and brand. They have missed out.
•Technology has moved on since Mifid and is now far more capable of exploiting regulation as an opportunity
•Siloed approaches resulted in multiple, repetitive touch points, giving a disjointed customer experience
•The initial touchpoint is on-boarding but within the first year needs to extend to customer lifetime management and renewals. This is a very different situation from new business only.
•The 'minimum harmonising' definition of compliance will mutate as regulations change, are enhanced, are interpreted and case studies become established.
The IDD requires the insurance industry to deliver for October 2018 and adapt to future requirements. Insurers who want to meet the requirements and then keep up are going to need:
–A highly agile, dynamic and situational rules based solution. Hard coded solutions are a suicidal approach.
–Ability to cover all lines of business
–Maximum reuse of rules to minimise cost of maintenance
–Dynamic Q&A sets for needs questionnaire across LoBs
–Integration with & orchestration of systems of record and reference data
–Dynamic case management, routing and data reuse
–Full omnichannel capability and certainly self service
The majority of UK brokers have very little or no knowledge of the impending Insurance Distribution Directive (IDD), Ecclesiastical Insurance revealed last week. The directive, described by the insurer as placing emphasis on transparency and openness, staff training and development, and pushing an industry-wide commitment to professional development, will be written into law next month. However, following pushback, its application date is set to be delayed until October 01 2018 – giving brokers six months to prepare for the changes. “Processes, documentation, training and competency, and other aspects of a broker’s business will be affected by the IDD. Brokers could prepare for and implement some of the changes, such as reviewing documentation and processes, or by ensuring they update their continued professional development (CPD) before the proposed application date,” .