Please note that the following is for guidance purposes only.
It is the responsibility of the person who wishes to engage in a particular financial service to ensure that he/she holds the correct authorisation to do so and to ensure that he/she is fully compliant with all other applicable regulatory requirements.
What are the types of Insurance and Reinsurance intermediary?
There are a number of types of such intermediaries:
- Insurance intermediary
- Tied Insurance intermediary (a sub-type of insurance intermediary)
- Reinsurance intermediary
- Insurance and Reinsurance intermediary
1. Insurance intermediary
An “insurance intermediary” means a person who, for remuneration, undertakes or purports to undertake insurance mediation.
“insurance mediation” means work undertaken in connection with entering into contracts of insurance, work undertaken preparatory to entering into such contracts, introducing persons to insurance undertakings or other insurance intermediaries with a view to entering into such contracts, or assisting in the administration and performance of such contracts (including dealing with claims under insurance contracts), but does not include:
- work undertaken by an insurance undertaking or an employee of such an undertaking in the employee’s capacity as such, or
- providing information on an incidental basis in conjunction with some other professional activity, so long as the purpose of the activity is not to assist a person to enter into or perform an insurance contract, or
- managing claims of an insurance undertaking on a professional basis, or
- loss adjusting or undertaking expert appraisal of claims for insurance undertakings
2. Tied insurance intermediary
This is a specific sub-status of insurance intermediary.
A Tied Insurance Intermediary means a person who carries on the activity of insurance mediation for or on behalf of one or more insurance undertakings in the case of insurance products which are not in competition and who acts under the full responsibility of those insurance undertakings for the products which concern them respectively.
Tied Insurance Intermediaries are not required to maintain Professional Indemnity Insurance because the relevant insurance undertaking takes full responsibility of the actions of the Tied Insurance Intermediary.
3. Reinsurance intermediary
A reinsurance intermediary means a person who, for remuneration, undertakes or purports to undertake reinsurance mediation.
“reinsurance mediation” means work undertaken in connection with entering into contracts of reinsurance, work undertaken preparatory to entering into such contracts, introducing persons to reinsurance undertakings or other reinsurance intermediaries with a view to entering into such contracts, or assisting in the administration and performance of such contracts (including dealing with claims under reinsurance contracts), but does not include:
- work undertaken by a reinsurance undertaking or an employee of a reinsurance undertaking in the employee’s capacity as such, or
- providing information on an incidental basis in conjunction with some other professional activity, so long as the purpose of the activity is not to assist a person to enter into or perform a reinsurance contract, or
- managing claims of a reinsurance undertaking on a professional basis, or
- loss adjusting or undertaking expert appraisal of claims for reinsurance undertakings
4. Insurance and Reinsurance intermediary
This is an intermediary that provides both insurance and reinsurance mediation services.
See the Guidance on Insurance Mediation Registration.
Do I need to register as an insurance and/or reinsurance intermediary?
You are an insurance/reinsurance intermediaries if you for remuneration (i.e. any form of payment, a fee, a commission, an asset, a thing of value, a service of value, etc.):
- Carry out any work connected with entering into insurance/reinsurance contacts for third parties; or
- Carry out any work in preparation for entering into insurance/reinsurance contacts for third parties; or
- Introduce persons to insurance undertakings or other intermediaries with a view to them entering into insurance contacts; or
- Help administer insurance/reinsurance contracts that have been entered into by third parties; or
- Help in the performance of insurance/reinsurance contracts that have been entered into (including dealing with claims) by third parties e.g. help the insured collect on insurance policies.
Provided you are not excluded from definition of insurance/reinsurance intermediary for reasons (a)-(d) as set out under the definitions.
Third Parties – acting as an intermediary, means acting between 2 other parties. In the case of insurance mediation, the intermediary acts between their customer and the insurance company (or in certain cases another intermediary who then deals with an insurance company).
Customer - Insurance intermediary - Insurance Company
Customer - Insurance intermediary 1 - Insurance intermediary 2 - Insurance Company.
If a person/firm takes out a policy in their own name (they are the named policyholder) they would not usually be considered an insurance intermediary (as they are acting for themselves not for a 3rd party).
Do I need any qualifications to become an insurance or reinsurance intermediary?
The qualifications and/or experience required depends on the service you intend to provide to consumers. Full details can be found in the Minimum Competency Requirements.
If I am authorised as a sole trader and want to set up a limited company, can I transfer my registration to the limited company?
An insurance/reinsurance intermediary’s registration is not transferable. If you wish to be registered as a different type of legal entity, you will need to make a full new application to the Financial Regulator.
How will I know if my application has been received?
The Financial Regulator sends a written acknowledgement of receipt of all applications, within 2 days of receipt.
What do I need to do if I no longer wish to hold a insurance/reinsurance intermediary registration?
If you wish to cancel your registration as an insurance/reinsurance intermediary, you will need to provide the Financial Regulator with a written request for cancellation of your registration and return the original document of your registration (the Certificate of Registration).
The written request should also clearly set out the reasons you wish to cancel your registration.