A new element is the diversification of channels through which insurance contracts can be concluded. The draft more clearly regulates the roles of insurance companies, brokers, insurance agents, bancassurance agents, broker assistants, and intermediaries. The CNPF states that this approach could contribute to increased competition in certain market segments and, indirectly, cost optimization for certain categories of insurance products.
At the same time, the draft establishes uniform requirements for the knowledge and professional skills of individuals involved in the distribution of insurance services, regardless of the type of insurance agent, so that clients can receive appropriate information and consultation during the insurance contract process.
Another important element is strengthening the requirements for pre-contract information. Insurance distributors will be required to provide clients with clear information about products offered, quality of services provided, remuneration method, existence of potential conflicts of interest, complaints procedure, and out-of-court dispute resolution mechanisms.
The draft also introduces rules for assessing clients’ requirements and needs to ensure that proposed insurance contracts match their profile and interests. In the case of consultation, distributors will be required to provide personalized recommendations and explain why a particular insurance product best meets their client's needs.
For insurance companies and intermediaries creating insurance products, the draft establishes requirements for product approval, review, and distribution process. This process must be proportionate to the nature of an insurance product and identify the target market.
For insurance-based investment products, the draft law establishes additional client protection requirements. Distributors will be required to collect information about clients’ level of knowledge and experience, their financial situation, ability to bear losses, investment objectives, and risk tolerance, ensuring proposed products match their clients’ profiles.
To align with the EU internal market, the draft law establishes rules for FOS/FOE (freedom of establishment and freedom of services), as well as mechanisms for cooperation and information exchange between competent authorities.
The draft law on distribution of insurance products will be promoted by the Ministry of Finance and is subject to a public approval and consultation procedure, the source added.
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