Table of contents:

• Introduction – What is the IDD?
• IDD’s impact on Learning management systems
• Cornerstone’s role in IDD Compliance
• Basic solutions to achieve IDD Compliance in Cornerstone
• Advanced IDD Compliance with Cornerstone
• eConsulting –  your Partner to reach compliance with IDD regulations
• Conclusions
• Q&A Summary

Introduction – What is the IDD?

European Directives are legislative acts of the European Union that require member states to achieve a specific outcome, but allow them to decide the methods of implementation into their national laws. This means directives set the overall goal and rules, while member states decide how to reach it. One of such directives is the so-called “IDD”.

The Insurance Distribution Directive (IDD) is an EU directive that has greatly affected the insurance brokerage market since 2018. The goal of the IDD was to create consistent regulations for insurance distribution across the whole European Union. All EU countries have already adopted the Insurance Distribution Directive. 

IDD’s impact on Learning Management Systems

The Insurance Distribution Directive has already strongly impacted Learning Management Systems used by insurance distributors, including banks that act as insurance intermediaries within the European Union. 

In order to comply with IDD, some companies must leverage LMS platforms to deliver, track, and demonstrate the necessary training. This applies mainly to insurance companies, but also to a wide range of intermediaries like brokers, agents, and even bank staff who sell insurance products. 

As a consequence, LMS systems have become crucial tools used to ensure compliance with local IDD’s requirements foremost facilitating the delivery of mandatory training on topics like product knowledge, regulatory changes, and ethical conduct, and providing auditable records of employee training.

Cornerstone’s role in IDD Compliance

Cornerstone OnDemand, as a comprehensive learning management system, plays a crucial role in facilitating IDD compliance for insurance distributors. Thanks to offering a centralized platform for training delivery, tracking, and reporting, Cornerstone enables companies to meet the directive’s requirements. 

The platform can be used to deliver mandatory training modules on product knowledge, regulatory updates, and ethical standards, while also providing advanced reporting features that demonstrate compliance to regulatory bodies. This allows organizations to efficiently manage and document the training of their staff involved in insurance distribution, ensuring they possess the necessary knowledge and skills as outlined by IDD regulations. 

Basic solutions to achieve IDD Compliance in Cornerstone

Cornerstone’s LMS out-of-the-box functionalities directly support IDD compliance by enabling businesses and organizations to create structured learning paths via curricula, ensuring employees gain necessary knowledge. Those learning paths can be automatically assigned to a group of people requiring training, who are automatically identified by the system based on employee data. 

• The platform’s ability to issue completion certificates provides verifiable proof of training, a key requirement for demonstrating competency to auditors and regulators.  
• Custom fields allow organizations to track specific employee data relevant to IDD requirements, such as personal data, roles and qualifications.  
• Automated email messages support organizations in identifying and reminding employees that are not on track to fulfill annual IDD requirements.  
• Robust reporting features enable the generation of comprehensive reports on training completion and progress, facilitating audits and demonstrating ongoing compliance with IDD’s professional development mandates.

Advanced IDD Compliance with Cornerstone

Depending on the specific local regulations and clients’ approach toward IDD implementation, custom solutions can be leveraged to put additional focus on ensuring compliance with IDD. An example is the advanced measurement of the time spent by learners on IDD training daily and annually. Another instance would be the automatic generation and delivery of documentation and files needed to prove IDD compliance to regulators. Greater focus on complying with IDD regulations can also be shifted more heavily towards learners, by obliging them to acknowledge their completed training and ongoing actions. 

With the relevant expertise and experience, such solutions can be implemented in the Cornerstone LMS. 

eConsulting –  your partner to reach compliance with IDD regulations

At eConsulting we understand that IDD compliance requires tailored solutions. That’s why we offer both out-of-the-box solutions for streamlined implementation and custom-tailored approaches to address your unique needs and local regulatory landscape.  

Our team possesses the expertise, knowledge, and experience required to guide through every step of the process, ensuring organizations meet all necessary requirements and maintain ongoing compliance with IDD regulations, as well as any other local and international laws.

Conclusions

In conclusion, Cornerstone offers a robust suite of functionalities, including curricula management, learning assignments, completion certificates, custom fields, and reporting, that are essential for achieving and maintaining IDD compliance.  eConsulting provides the expert support and guidance a company might need to effectively use these capabilities. Partnering with eConsulting ensures a smooth and successful IDD compliance journey, allowing your business to focus on its core business while meeting all regulatory obligations.

Mariusz Kolarz
CSOD Consultant

Q&A Summary