Nature of the broker’s work
According to the Insurance Intermediation Act (Journal of Laws of 2003 No. 124, item 1154), an insurance broker performs activities on behalf of or for the benefit of an entity seeking insurance coverage, hereinafter referred to as brokerage activities, consisting of: concluding or leading to concluding insurance agreements, performing preparatory activities for the conclusion of insurance agreements and participating in the management and performance of insurance agreements also in compensation cases.
The Financial Supervision Authority monitors the insurance brokers’ activity, which, among other things, examines how the broker complies with the duties imposed upon him/her.
The broker’s statutory obligations include, among others:
- providing written advice based on a comprehensive and thorough analysis of available insurance offers, sufficient to prepare a recommendation of the most appropriate insurance agreement and a written explanation of the basis of the recommendation,
- maintaining the confidentiality of all information obtained in connection with the performance of brokerage activities. This obligation is incumbent on the insurance broker also upon termination of the contractual relationship with the Client,
- continuous improvement of professional skills,
- pursuing activity respecting the interests of parties to the insurance agreement.
The insurance broker is subject to compulsory civil liability insurance in respect of conducted brokerage activity.
- The broker acts on behalf of his/her Clients keeping impartiality in his/her recommendations and relying solely on the benefits for his/her Clients.
- While the agent may only offer the scope of insurance of the insurance company, which (s)he represents, the broker may offer solutions of the wide offer of the market, including individually negotiated terms of insurance.
- In the event of the occurrence of an insurance accident, the broker, as an independent agent, always represents the interest of the Client.
- Unlike the agent, the basis of our work is the brokerage power of attorney granted, therefore, due to the fact that we are the Client’s authorised representative, and not the representative of the insurance company, our utmost objective is always the interest of the Client.
Unlike the insurance agent whose job it is to present a widely available offer of the insurance company that (s)he represents, the role of the broker involves adjusting, through risk analysis and negotiations, the scope of insurance tailored to the real needs of the Client.
Due to the actual independence from insurance companies, the broker offers his/her Client a comprehensive insurance coverage and not just the standard offer of the insurance market.