The Insurance Distribution Directive (IDD), regulating the activities of insurance intermediaries, insurance companies, their employees, ancillary insurance intermediaries, and online distribution, came into force last February. EU member states have two years' time to update their legislation accordingly. This means that new IDD regulated laws will be put into practice already in 2017. That's not very long.
Concrete consequences of IDD
IDD has many practical implications for insurance companies since it deals with employees' knowledge and competence. It also sets measurable goals for volume and contents of employee training, such as having at least 15 hours of professional training yearly and in relation to the products and services, business type, roles etc. And, as always, competence and training related regulations raise the issues of learning validation and being able to prove the compliance.
From an insurance business point of view, the concrete consequences of IDD are:
1. Another regulatory compliance issue: new guidelines, competence requirements, contents, reporting and validation requirements have to be taken into practice.
2. Organizational change in a short time: change in way of work has to be pushed through efficiently.
3. Learning and development efforts with learning validation dilemma. People have to be trained and certified in the context of business and of their job roles. Authorities probably require some proof of these efforts.
4. Administrative burden – planning, informing, administering, record keeping, reporting and validations. Up-to-date records have to be kept and proof of compliance should be always available online. There is a risk of a considerable amount of non-value-added excessive work of planning, informing, reporting and validation.
5. Need for investment (a project) in the beginning and budget for on-going operative costs later on.
Solving IDD compliance with Valamis
In my previous blog post "Cutting edge solution for solving regulatory compliance", I have described how Valamis - Learning Experience Platform solves most compliance problems by providing efficient tools for training, validating, activity tracking and analytics. Valamis solves the IDD compliance in particular equally easily, in more detail as follows:
1. Valamis provides an easy-to-use Lesson studio tool for creating learning contents from existing or new digital materials. Equally easy is creating certification programs matching IDD or any other requirements.
2. Lessons and learning paths can be targeted exactly to the right people individually and, for example, based on their roles, teams and/or organizations. In Valamis, each user sees with personalized view their next learning goals and their compliance status.
3. Valamis allows very easy and user-friendly ways of learning validation via tests and quizzes, and in addition also by registering other kinds of activities and accomplishments. Out-of-the-box dashboards and visual analytics provide real-time proof of compliance status.
4. Administrative work is minimal, since Valamis manages personalized notification, content and learning goal targeting, compliance records and audit reporting from the Learning Record Store.
5. Since system has everything required plus content creation and targeting is fast, initial investments remain reasonable and after core contents are there, operative costs remain even lower.
Video Guide: How to solve the IDD compliance easily with Valamis.