Insurance Distribution Directive Policy (Sept25)

Scope

This policy applies to all employees in The Eric Whitehead Partnership, including managers and consultants.

Background

The Insurance Distribution Directive (IDD) and The Insurance Distribution (Amendment) (EU Exit) Regulations 2019 apply to firms carrying on insurance distribution activities.

The IDD, which came into force on 1 October 2018, defines ‘insurance distribution’ as the activities of advising on, proposing, or carrying out other work preparatory to the conclusion of contracts of insurance, of concluding such contracts, or of assisting in the administration and performance of such contracts, in particular in the event of a claim.

Firms involved in personal injury, conveyancing and probate are most likely to be carrying out insurance distribution activities. For example, by arranging after-the-event insurance in a personal injury matter or defective title insurance in a conveyance.

There may be other insurance products that apply to other areas of law.

The directive is designed to ensure a level playing field across all those providing, facilitating and arranging insurance products. It also seeks to strengthen consumer protections for clients such as improving the information they receive.

SRA Regulations

You should have particular regard to the SRA Financial Services (Scope) Rules (Scope rules) and the SRA Financial Services (Conduct of Business) Rules (COB rules). The specific requirements which relate to insurance distribution activities are set out in Part 3 of the COB rules.

In addition, you should have regard to the SRA Principles and Codes of Conduct.

IDD Registration

The firm is covered by the IDD and is registered with and authorised by the Solicitors Regulation Authority (SRA) in relation to this. We are also listed in the register maintained by the Financial Conduct Authority (FCA) so that we can carry out insurance distribution activities (although we are not authorised by the FCA).

The firm’s Insurance Distribution Officer (IDO) is Nicola Robinson. She is responsible for this policy and management of the firm’s insurance distribution activities.

Training

The IDO and all staff directly involved in insurance distribution activities must hold appropriate knowledge and an ability to perform their duties. The firm provides relevant training to ensure compliance with this requirement and that staff remain up to date on developments in this area. The aim of the training we provide is to equip relevant staff with the necessary knowledge on key areas including

the terms and conditions of policies offered;
laws covering the distribution of insurance products;
claims and complaints handling requirements; and
how to assess a client’s needs.

Product information

The firm will ensure that it has adequate arrangements in place to obtain information about the insurance products which it may think are suitable for its clients and understand the key features of the insurance product and who the product is being marketed for.

The Insurance Product Information Document is included in Appendices below and must be provided to the client prior to the conclusion of a contract of insurance.

Communicating with clients

You must ensure you communicate all information, including marketing information, to clients in a way that is clear, fair and not misleading; marketing communications must always be clearly identifiable as such.

Prior to the conclusion of a contract of insurance you must disclose the following information to clients:

whether the firm provides a personal recommendation about the insurance products offered;
the firm’s complaints procedure;
whether the firm is representing a client or acting for and on behalf of the insurer;
whether the firm has an interest (10% or more) in an insurance business; and
whether an insurance business has a direct or indirect interest (10% or more) in the firm.

You must also provide clients with a demands and needs statement prior to the conclusion of a contract of insurance along with any fee that is payable for the insurance product.

File and risk reviews

Compliance with this policy will be checked as part of the firm’s periodic file review process and as part of the file closing risk assessment process.

Review of this policy

This policy will be reviewed at least annually by Nicola Robinson.

September 2025

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