Type of Collaboration
The activity of a wholesale broker, although it is not regulated by a specific intermediation law, is spread in different European Countries. A wholesale broker acts as an intermediary between a retail broker and an insurer, while having no contact with the insured. The activity of a wholesale broker consists of placing difficult-to place risks. As such, it possesses specialised expertise in a particular line of coverage that is unusual and/or have greater access to or influence with certain insurance markets.
In this context, each part will carry on its business independently: the retail broker, through the wholesale broker’s consultancy, will look for the most appropriate insurance policies for the customer’s needs, whereas the wholesale broker will select products and services for the retail broker, thus providing him with technical and professional consultancy.
Article 22, paragraphs 10, 11 and 12 of the Legislative Decree No. 2012/179, has established that mutual collaboration between members from the A-B-D- R.U.I. sections is allowed even with “the use of the respective mandates”. This “free cooperation between intermediaries” is based on the following functions, referred to the closed insurance contracts:
- “issuer/distributor intermediary“: is the intermediary through which the insurance contract with the proposing intermediary’s clients is concluded ;
- “proposing intermediary“: is the intermediary proposing to the distributor the stipulation of insurance contracts with his clients,in virtue of this Agreement;
Following this Agreement, each intermediary may be either an “issuer/distributor” or a “proposing intermediary”.
BSA, as a wholesale broker, does not have direct client, therefore considers itself a distributor intermediary, supporting its Agents and Brokers in placing their clients’ risks. As such, BSA provides its Partners – Agents and Brokers – with an evaluation of the national and international insurance companies, the Lloyd’s Syndacate or the most specialised insurer in the signing of agreements that can be proposed to their clients.
For this reason, the Agreement concerning the free cooperation between intermediaries enables the following roles: BSA is a distributor intermediary, whereas our Partners – Agents and Brokers – are proposing intermediaries. Following this, our Partners will benefit from BSA insurance relationships, whereas the contrary is not possible.
To conclude, any collaboration relationship between our Correspondent as “reporting / proposing intermediary” and other “issuing intermediaries or placers” belonging to the same or to another RUI section must not be conveyed to the Invass, therefore evidence to the RUI will not be given.
BSA Insurance Broker professional ethics
BSA observes its professional ethics and guarantees:
- protection of the distributors’ and clients’ rights
- respect for privacy