Which type of distribution role was introduced for the first time by the Insurance Distribution Directive?

The Insurance Distribution Directive (IDD) introduced the concept of those that sell direct to customers, which reflects a significant shift in how insurance products can be marketed and sold. This type of distribution emphasizes the interaction between insurers and consumers, ensuring that customer interests are prioritized and protected.

The directive seeks to enhance consumer protection, increase transparency, and ensure that individuals who sell insurance have the necessary qualifications and understanding of the products they offer. By focusing on selling directly to customers, the regulatory framework encourages practices that facilitate better communication and clearer information dissemination, contributing to more informed decision-making by consumers.

This aspect of the directive is particularly relevant in the contemporary market, where direct-to-consumer sales channels have expanded with the rise of technology and online platforms. As a result, the directive sets standards for these direct interactions, aiming to enhance the professionalism of sales practices in the insurance industry.