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
• assisting with claims-related services and
• 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
Types of insurance intermediaries
• Global and multinational business insurance
• Major domestic intermediaries
• Small private intermediaries
– Exclussive agents
– Tied agents
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
– 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.
Lecture 2 Cordoba, 15-17 November 2010 6