Management of Distribution Risks and Digital Transformation of Insurance Distribution - A Regulatory Gap in the IDD

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dc.contributor.authorMarano, Pierpaolo
dc.date.accessioned2021-11-17T08:11:30Z
dc.date.available2021-11-17T08:11:30Z
dc.date.issued2021-08-02
dc.description.abstractThe Insurance Distribution Directive (IDD) aims to regulate insurance distribution in the EU regardless of distribution channels and means. Although new technologies affect insurance distribution, the IDD does not explicitly regulate this digital transformation. Insurers and intermediaries must comply with detailed business conduct rules that aim to counteract distribution risks. However, the IDD exempts ancillary insurance intermediaries from its scope when they meet certain conditions. The article highlights the regulatory framework on insurance, requiring insurers and intermediaries to address distribution risks, and analyses how this exemption affects the management of distribution risks in online distribution from a legal perspective. The focus on online distribution depends on the scale such distribution can achieve. The consideration of the scale allows for challenging the political choice behind the exemption of ancillary insurance intermediaries, which consists of the principle of proportionality. A regulatory proposal to counteract these adverse effects is to remove the exemption from the IDD rules for ancillary intermediaries in online distribution. Such a proposal is compliant with the principle of technological neutrality and is in line with the new legislative proposals in the Digital Services Act and Digital Markets Act. ---//--- This article is an open access article distributed under the terms andconditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/)en_US
dc.description.sponsorshipPublikācija uzrakstīta un izdota Fundamentālo un lietišķo pētījumu programmas ietvaros: lzp-2020/2-0061 "Mazo un vidējo uzņēmumu (MVU) digitālā transformācija un ilgtspēja Latvijas ekonomikas restartēšanai un modernizācijai (DigiSMEs)"en_US
dc.identifier.citationMarano, P. Management of Distribution Risks and Digital Transformation of Insurance Distribution—A Regulatory Gap in the IDD. Risks 2021, 9, 143. https://doi.org/10.3390/risks9080143en_US
dc.identifier.doi10.3390/risks9080143
dc.identifier.urihttps://dspace.lu.lv/dspace/handle/7/56723
dc.language.isoengen_US
dc.publisherMDPIen_US
dc.relationeu-repo/grantAgreement/FLPP/lzp-2020/2-0061//Mazo un vidējo uzņēmumu (MVU) digitālā transformācija un ilgtspēja Latvijas ekonomikas restartēšanai un modernizācijai/DigiSMEs/en_US
dc.relation.ispartofseriesThe Risk Landscape within FinTech and InsurTech Business Models;8
dc.rightsinfo:eu-repo/semantics/openAccessen_US
dc.subjectResearch Subject Categories::SOCIAL SCIENCES::Business and economics::Business studiesen_US
dc.subjectinsurance distributionen_US
dc.subjectdigital transformationen_US
dc.subjectnsurance Distribution Directiveen_US
dc.subjectdistribution risksen_US
dc.subjectinsurance distributorsen_US
dc.subjectproduct governanceen_US
dc.subjectprinciple of proportionalityen_US
dc.subjectprinciple of technological neutralityen_US
dc.titleManagement of Distribution Risks and Digital Transformation of Insurance Distribution - A Regulatory Gap in the IDDen_US
dc.typeinfo:eu-repo/semantics/articleen_US
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