Insurance contracts can be marketed by different insurance intermediaries: general insurance agent, insurance or reinsurance broker, insurance agent, insurance intermediary agent. These intermediaries have obligations to provide information and advice to their clients.
Insurance intermediaries: brokers, agents and representatives
Since April 30, 2007, all insurance intermediaries must be registered and entered in a register, including European intermediaries authorized to operate on national territory.
The ” Organization for the Unique Register of Insurance, Banking and Finance Agents. ” (Ouria) is in charge of keeping this register, which can be consulted on their website. This system allows policyholders to check that the intermediaries they use are properly registered.
The insurance or reinsurance broker
The insurance broker has the status of a trader. He is a natural or legal person. He is not bound by a contractual exclusivity to one or several insurance companies. He acts on behalf of his clients and, in the event of a fault, he is in principle held professionally liable. In order to sell insurance contracts, the broker is obliged to take out professional liability insurance and to provide proof of a financial guarantee from a bank or an insurance company.
The general insurance agent
The general insurance agent is a natural or legal person who exercises a liberal profession. He has signed an exclusive mandate with one or several insurance companies.
He represents the insurance company in the field, for which he is responsible.
In some cases, the general agent can sell insurance contracts on behalf of other insurance companies than those he represents. In this case, he acts outside his mandate as a general agent and under his own responsibility.
The insurance agent
The insurance agent is a non-salaried individual or a legal entity, other than a general insurance agent, mandated by an insurance company with or without a contractual exclusivity link.
The insurance intermediary agent
The insurance intermediary is a natural or legal person mandated by an insurance or reinsurance broker, a general insurance agent or an insurance agent. The intermediary on whose behalf he acts is liable for any faults he may commit in the exercise of his mandate.
The activity of insurance agents and insurance intermediaries is limited to the contribution and possibly the collection of contributions and, in life insurance, to the remittance of funds to the insured or beneficiaries. It excludes the management of insurance contracts and the settlement of claims.
Information and advice obligations of insurance brokers, agents and representatives.
Insurance intermediaries have an obligation to provide information and advice to their clients.
Before concluding an insurance contract, the insurance intermediary must communicate all this information to the client in writing, in a clear and comprehensible manner.
At the request of the customer or when an immediate guarantee is required, this information may however be given orally. In this case, it must be provided in writing immediately after the contract is concluded.
Information due to the client
The insurance intermediary must indicate to each new client :
- his name or company name and business address ;
- his registration number in the Orias register, as well as the means allowing the client to verify the registration;
- if he has a direct or indirect holding of more than 10% of the voting rights in the capital of an insurance company;
- if an insurance company or the parent company of an insurance company has a direct or indirect shareholding of more than 10% of the voting rights in the capital of its company;
- the contact details of the complaints department, if any, as well as those of the PCRA (Prudential Control and Resolution Authority).
In addition, insurance brokers who provide advice based on an analysis of the various products marketed must also indicate to the client, where applicable, the name of the insurance company or insurance group that generated more tha This information concerns only new clients. However, in the event of a change affecting any of this information, the insurance intermediary must inform all policyholders when renewing or modifying their contracts, or when taking out a new contract.
The insurance intermediary must indicate to the potential policyholder, whether he is an old or new client, whether or not he is subject to an exclusive relationship with one or more insurance companies and/or whether he declares that he bases his advice on an analysis of the various products marketed. In this case, he is obliged to analyze a sufficient number of products offered on the market in order to recommend the one most suited to the client’s needs.
If the intermediary is subject to an exclusive relationship with one or more insurance companies, the client may ask to know the name(s) of these companies.
If the intermediary is not subject to an exclusive relationship but is not able to base his advice on an analysis of the various products marketed, the client may ask to know the names of the insurance companies with which he works.
Insurance intermediaries must also specify :
- the needs and requirements expressed by the prospective policyholder ;
- the reasons for the advice given on a particular contract.
With regard to life insurance, since July 1, 2010, insurance intermediaries must also inquire more specifically about the client’s financial situation and financial knowledge and experience. If the client does not provide this information, the intermediary must warn him.n 33% of their turnover in the previous year.