Who are they ?
The Insurance Mediation Directive (IMD) no longer refers to the traditional distinction between agents and brokers and adopts an activity-based approach. The IMD relies on disclosure at contract level so that the insurance-seeker is aware of the capacity in which the insurance intermediary is acting.
Some EU Member States have retained the distinction while others have adopted the pure IMD approach. A wide variety of legal definitions of insurance brokers and agents exists across the EU.
There can be more than one intermediary involved in the chain of the intermediation activity for one risk or client. Furthermore, there are reinsurance brokers who solicit, negotiate and place reinsurance cessions and retrocessions on behalf of ceding insurers seeking coverage with reinsurers. Reinsurance brokers can also be involved in a reinsurer’s retrocession of parts of his risk.
Insurance agents are, in general, intermediaries who conduct business on behalf of one or more insurance companies with whom they have an "agency agreement". The insurer-agent relationship can take a number of different forms (multiple, tied,…).
Insurance brokers assist clients in the choice of their insurance by presenting them with alternatives in terms of insurers and products. What distinguishes them from the agent is in most cases, the absence of a contractual relationship with one insurer or multiple insurers to place business on an exclusive basis.
Independent Financial Advisers (IFAs) act as impartial advisers to both consumers and businesses. They offer independent advice on investments, pensions, and in some cases mortgages and protection.
