James Bridge, Assistant Director, Head of Conduct Regulation at the Association of British Insurers, said:
“We are pleased that HM Treasury has taken the pragmatic decision to pause the transposition process until the European Parliament and Council can confirm the application delay of the IDD. This will provide insurers with the maximum possible level of certainty at this stage of the difficult implementation process. Delaying the application date of the IDD will benefit consumers by giving firms a realistic timeframe to properly design and test the changes they need to implement for IDD.
“This decision comes just three weeks in advance of the scheduled implementation date of the IDD, and firms are likely to bear economic costs due to the uncertainty of the past few months. This situation was not necessary and we are glad that the UK Government has worked with its European counterparts to help address this issue.”