What you need to know about the new Insurance Distribution Directive

Redbrick SolutionsBy Legal Futures’ Associates Redbrick Solutions

There is an ever-increasing need for insurance products in conveyancing and this need should be considered as managing risk and not just as selling products. Search and indemnity insurance is bought by conveyancers on behalf of their clients and with the new Insurance Distribution Directive (EU legislation that sets regulatory requirements for firms designing and selling insurance products) it is important that conveyancers are confident that the policy they are purchasing is the best available.

Law firms involved in personal injury, conveyancing and probate will most likely be undertaking insurance distribution activities. The IDD seeks to strengthen consumer protection by imposing requirements on firms that provide, facilitate and arrange insurance products. The IDD aims to deliver a number of requirements of a professional and organisational nature, for example continuing professional development and professional indemnity insurance requirements, as well as dealing with requirements for the provision of information, complaints handling and out of court redress. The SRA has provided guidelines to help solicitors and conveyancers understand their obligations and how to comply with them.

Search and indemnity insurance policies can ensure that the sale of properties affected by potential issues run more smoothly and quickly and it passes some of the risk from the purchaser to the insurance company. The collaboration between Redbrick Solutions and CLS PI will allow indemnity policies and search insurance policies to be ordered through the Redbrick Solutions Case Management software. These policies will be automatically tagged, tracked and put into the correct matter file. This integration will not only save time, and therefore money, but will also provide full visibility of orders which, in turn, will help manage risk for the practice. If the matter requires a more complex policy, a variable statement of fact can be produced and direct contact with an experienced underwriter is always available.

To find out more, join our complimentary webinar for ‘Guidance on the Insurance Distribution Directive (IDD) and Introduction to Variable Statements of Fact.’ The 30-minute training session will cover; Overarching requirements of IDD, New requirements introduced with IDD, What solicitors need to do to comply, Introduction of the first of its’ kind, Variable Statements of Fact.  To help law firms act in adherence to the requirements of IDD, the webinar will also review the main requirements of the Directive, recommendations from the SRA and CLC as well as highlighting actions law firms can take to ensure compliance.

The webinar will be taking place on 16th February at 11am. Please register here if you are interested. https://register.gotowebinar.com/register/1863547276420294415


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