IDR Frequently Asked Questions

  1. What is the European Union (Insurance Distribution) Regulations 2018 (“IDR)”?
  2. What are the benefits of IDR?
  3. What does this mean for me as a Liberty Insurance customer?
  4. When does it come into effect?
  5. What is a pre contract agreement/disclosure?
  6. What is a Insurance Product Information Document (IPID)?
  7. What are the penalties for non-compliance?



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

The Insurance Distribution Regulations 2018 is a recast of the existing Insurance Mediation Directive and 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).

What are the benefits of IDR?

There are a number of 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

What does this mean for me as a Liberty Insurance customer?

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

When does it come into effect?

IDR is effective 1st October 2018.

What is a pre contract agreement/disclosure?

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 companies complaints procedure

Our Liberty Insurance terms of business document which can be found at www.libertyinsurance.ie/assets/Uploads/Terms-of-Business.pdf has been updated to include this information for all of our customers.

What is a Insurance Product Information Document (IPID)?

The IDR requires insurance distributors to provide all customers with product information in the form of a product information document. This document is intended to enable customers to make an informed decision about a non-life insurance product before they decide to buy it.

Liberty Insurance as manufacturer of insurance products are responsible for providing you with a Product Information Document before you purchase insurance from us.

In Summary:

  • A IPID must be issued to a customer prior to the conclusion of a contract
  • The IPID is a generic standalone document across the EU so the template is prescriptive and cannot be amended by an insurance distributor
  • All our IPIDs will be available here

What are the penalties for non-compliance?

There are fines up to €5 million or up to 5% of total annual turnover or twice the amount of profits gained from the breach.