Newsletter
PERMITTED SERVICE SCOPE FOR INSURANCE BROKERS
Article 9 of the Insurance Act defines an " insurance broker" as a "person who, for the interests of the insured, negotiates an insurance contract or provides relevant services for commission or remuneration." With regard to the scope of service an insurance broker may provide, on 28 December 2007 the Financial Supervisory Commission (FSC) issued a letter stating that in addition to negotiating insurance contracts, an insurance broker may provide risk management planning, reinsurance planning, and insurance claim filing services. The details are as follows:
Service scope | Items of service |
Risk management planning | Personal risk planning Property risk planning Liability risk planning Loss prevention planning Other consultation and services relating to insurance or risk management planning |
Reinsurance planning | Reinsurance planning and consultation can only be performed by insurance brokers approved by the FSC to operate reinsurance brokerage business, and only for cases in which there is no conflict of interest with the reinsurance contracts which have been handled by the brokers. |
Insurance claim filing services | Assistance in matters relating to the filing of insurance claims is limited to the claims not arising from the insurance contracts negotiated by the insurance brokers concerned and to the cases in which there is no conflict of interest with the insurance contracts handled by the brokers. |