Insurance intermediaries are engaged in mediation of insurance contracts, receiving fees for it. In Estonia, insurance intermediaries are divided into insurance brokers and insurance agents. The activities of insurance brokers and insurance agents are fundamentally different: insurance brokers act in the interests of policyholders, agents in interest of insurance companies.
The obligations of an insurance broker include, inter alia, to:
- find out the insurable interests and demands of the customer as well as to recommend an insurance contract to the customer from among the offers made by a sufficient number of insurance companies
- justify the advice and recommendations provided to the costumer with thoroughness which corresponds to the complexity of the insurance contract
- introduce to the customer prior to entry into an insurance contract the conditions of the insurance contract to be entered into, including the size of the insurance premiums, the procedure of payment and the restrictions and exclusions relating to the contract
- notify the customer of the amount of the brokerage fee separately for each insurance contract to be mediated
- notify the customer of the principles of compensation in the event of the occurrence of an insured event, including the court where the customer may file a claim on the basis of the insurance contract
- advise the customer on other issues relating to the insurance contract (incl. those relating to administration or claim settlement, etc.).
The obligations of an insurance agent include, inter alia, to:
- inform the customer which insurance company it has the right to represent and which classes of contracts it mediates
- notify the customer of possible insurance contract options
- before the conclusion of the insurance contract, present the conditions of insurance contracts, including the procedure of payment of insurance premiums, and restrictions and exclusions relating to the contracts
- introduce to the customer the payments and compensation relating to the contract.