Assumption of outsourcing

Insurance intermediaries assuming key functions from insurance companies (outsourcing).

Where an insurance intermediary assumes outsourced key functions from an insurance company (e.g. handling claims, portfolio management, product development, etc.), it is regarded as a contractual relationship with the insurance company under Article 45 let. c ISA and falls under the disclosure requirement set out in Article 45 ISA. 

Intermediaries are obliged to disclose those contractual relationships to their clients in the information sheet.

Non-tied intermediaries and tied multiple agents may declare this information as follows

<broker company> and <insurance company> have concluded a cooperation agreement whereby, in addition to the brokerage of insurance contracts, <broker company> has also taken on duties from <insurance company> by largely assuming the following outsourced functions: e.g. handling claims, portfolio management, product development, etc.

Agents (tied intermediaries working for one insurance company) may use this declaration

<broker company> and <insurance company> have concluded a cooperation agreement whereby, in addition to the brokerage of insurance contracts, <broker company> has also taken on duties from <insurance company> by assuming the following outsourced functions: e.g. handling claims, portfolio management, product development, etc.

 

This declaration must be visible on the information sheet and written in a way that is clear and easily understood as prescribed in Article 45 ISA.