Question ID: 1628
Regulation Reference: (EU) No 2017/2359 - info requirements and conduct of business rules applicable
Topic: Other
Status: Final
Date of submission: 10 Jul 2018
Question
Would an independent broker who acts on behalf of the customer, be able to contribute to issuing documentation and claims assessment on behalf of the undertaking if it handles any arising conflicts of interest in an appropriate manner?
EIOPA answer
There is no legal definition of “independent broker” in the IDD. EIOPA understand that there are various definitions of what it means to be an independent broker in national legislation and there may be specific national requirements for independent brokers.
From an IDD perspective, an intermediary can carry out activities on behalf of both the customer and the insurance undertaking provided that those activities have been assessed for conflicts of interest and appropriate measures are implemented to prevent any conflicts of interest arising from those activities from influencing the outcome in a way that may be detrimental to the interests of the customer.
The principle set out in Article 17(1) of IDD should also apply, in that when carrying out insurance distribution activities, insurance distributors must always act honestly, fairly and professionally in accordance with the best interests of their customers.