The legislation transposing the IDD into German law has been passed (as resolved by the German Parliament on 28 June 2017 and by the Federal Council of Germany on 7 July 2017). One of many changes will be that the transposed IDD will be applicable to all insurance distributors (Versicherungsvertreiber), including insurers.

In addition to transposing the IDD generally, a few German specific aspects including the ones highlighted below have been added at the final stage of the legislative process. Payment protection policies (Restschuldversicherungen) need to comply with additional transparency and information requirements: Mandatory cooling-off notices must be provided to the policyholders and the insureds one week after their respective contractual declaration regarding the insurance policy. This includes the (repeated) provision of a product information leaflet to the policyholders and the insureds respectively. Life insurers with participating products also need to provide additional information in the annual notification to the policyholder.

After a highly controversial debate until the last minute, a proposal to limit the remuneration of brokers to payments such as commissions received from insurers (e.g. vis-à-vis policyholders) was not included. Meanwhile, the prohibition for insurance distributors to pass on commission to the policyholders / insured persons will now be included in the German insurance law on a statutory level (as opposed to a simple ordinance issued by the ministry).

Training requirements have not yet been finalized in the German legislation. Additional guidance and provisions regarding training requirements will be included in a regulation by the German Federal Ministry of Economics. This regulation is expected for later this year. Although not common, it was agreed that this regulation will even require an approval by Parliament.

Finally, it needs to be noted that further specifications regarding insurance distribution are expected to be made via directly applicable Delegated Acts of the European Commission.