The European Insurance and Occupational Pensions Authority (EIOPA) published its fifth annual report on administrative sanctions and other measures imposed in 2023 by National Competent Authorities (NCAs) under the Insurance Distribution Directive (IDD), recording 1,510 sanctions across 20 Member States and noting that IDD-based sanctions are being applied in an increasing number of jurisdictions. The report shows a rise since 2021 in sanctions linked to product oversight and governance requirements, which it attributes to higher supervisory scrutiny at national and European level, alongside a continuous increase in sanctions related to general conduct of business requirements such as the provision of advice. Over the past five years of IDD application, registration withdrawals and administrative fines have been the most common tools, particularly for breaches tied to registration and training and competence requirements, with more than 8,000 withdrawals of registration and over 3,800 fines imposed in the European Economic Area. It also notes that orders to cease and desist, typically used before a formal sanction is launched, have helped limit or resolve issues before they become detrimental to consumers, and includes a case study on enforcement of the IDD principle that distributors must act honestly, fairly and professionally in customers’ best interests. EIOPA cautions that the number of sanctions alone is not a sufficient basis to assess the effectiveness of IDD supervision, since other measures may be used to address broader market failures.
European Insurance and Occupational Pensions Authority 2025-01-29
European Insurance and Occupational Pensions Authority publishes 2023 Insurance Distribution Directive sanctions report highlighting 1,510 measures across 20 Member States
The European Insurance and Occupational Pensions Authority (EIOPA) released its fifth annual report on administrative sanctions under the Insurance Distribution Directive (IDD), noting 1,510 sanctions across 20 Member States in 2023. The report highlights an increase in sanctions related to product oversight, governance, and general conduct of business requirements, attributed to heightened supervisory scrutiny. EIOPA emphasizes that the number of sanctions alone does not fully reflect IDD supervision effectiveness, as other measures address broader market failures.