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 Marcin Kawioski
  Intermediaries as key actors in the
  process of selling financial products
• facilitating entry into the market, helping new
  financial provider reach a wide client base
  without having to incur the costs of building a
  distribution network.
• assisting with claims-related services and
  policy administration
• assisting in underwriting of risk
     Intermediaries – consumers
• identifying the risks customers face
• ensuring that customers take well informed
  decisions about the risks they wish to insure
• Helping in designing new and innovative
• reducing costs of customers’ search
• providing personalised advice
• assisting customers within claims proces and
  policy administration.
 Types of insurance intermediaries
• Global and multinational business insurance
• Major domestic intermediaries
• Small private intermediaries

• Dependent
   – Exclussive agents
   – Tied agents
   – Multi-agent
• Independent
             Register of intermediaries
•   Should provide a high level of professionalism and competence among insurance
    intermediaries whilst guaranteeing a high level of protection of customers' interests.
•   Should provide minimum professional requirements
     –   appropriate knowledge and ability as laid down in national rules
     –   good repute
     –   professional indemnity insurance or other comparable guarantee against liability arising out of
         professional negligence
     –   sufficient financial capacity to protect customers against any failure by the intermediary to transfer
         customers' premiums to insurance companies or to pass on to customers money received for claims
         under the policies they hold.
•   insurance intermediaries is obliged to give customers clear explanations for the advice they
    give on which products to buy (why they have recommended particular products in the light
    of the customer's individual requirements).
•   registering insurance intermediaries should be under the supervision or control of the
    competent authority of that State.
•   easy public access to details of registered insurance and reinsurance intermediaries,.
•   appropriate and effective Alternative Dispute Resolution procedures for out-of-court redress
    for dissatisfied customers, in particular via the cross-border FIN-NET network.

             Marcin Kawioski

Lecture 2      Cordoba, 15-17 November 2010   6

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