Since March 2021 and the entry into force of the Sustainable Finance Disclosures Regulation (SFDR), it is mandatory for insurance intermediaries providing advice on IBIPs and investment firms providing investment advice to comply with some specific sustainability-related disclosure obligations and to integrate sustainability factors and risks into their decision-making process. In parallel, since August 2022, the IDD and MiFID II delegated acts require insurance intermediaries distributing IBIPs and investment firms providing investment advice and portfolio management to integrate sustainability preferences into their advisory process. In its third report on the application of the Insurance Distribution Directive, published in March 2026, EIOPA has underlined that sustainability disclosures and preference assessments remain poorly understood and inconsistently applied across Member States, raising concerns about greenwashing, green claims and consumers protection.

Since March 2025, the European Commission has been working on an Omnibus I on sustainability, aimed at simplifying sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD), Taxonomy and the Corporate Sustainability Due Diligence Directive (CS3D) for all financial market participants. It especially targets SMEs (small and medium-size enterprises) by limiting the trickle-down effect those regulations could have on SMEs and on intermediaries. The Commission will develop a voluntary sustainability reporting standard, addressing companies that do not fall under the CSRD, i.e. the non-listed micro-, small- and medium-sized undertakings. This work is based on what the EFRAG has done on the VSME. This standard will be used when providing sustainability reporting information to insurers and other business partners asking for it.

In parallel, climate change and environmental risks are having an increasingly significant impact on the work of intermediaries. More frequent natural catastrophes, rising premiums, coverage gaps and insurability concerns make sustainability a practical issue for clients. Once again, intermediaries play a key role in helping consumers understand climate-related risks, adapt coverage, and access prevention-oriented and resilience-enhancing solutions.

Sustainability affects the daily work of insurance intermediaries. They need to learn about the specifications of sustainable products, use new tools, and change the way they work to follow the rules and keep up with a market that is constantly changing. Intermediaries also play an important role in explaining sustainability to their clients. Many sustainability terms and claims are complex, so intermediaries must turn them into simple and clear explanations. This helps consumers understand what sustainability really means for them and make better, informed investment choices. All of this also has an impact on how intermediaries are supervised, as sustainability considerations influence the oversight of their business activities.