insurance agent insurance broker

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Invest in people! EUROPEAN SOCIAL FUND Sectoral Operational Programme Human Resources Development 2007 - 2013 Priority Axis 3 "Increasing adaptability of workers and enterprises" Key Area of Intervention 3.3 " Development of partnerships and encouraging initiatives for social partners and civil society." Project Title: “Network of Competent Authorities for Professional Qualifications in Romania (IMI PQ NET Romania)" Beneficiary: Ministry of National Education Contract no. POSDRU/93/3.3/S/53132 GUIDE ON COMPETENCE CERTIFICATION AND QUALIFICATION RECOGNITION FOR THE INSURANCE AGENT AND INSURANCE BROKER Author: Dr. Irina Dumitriu July 2013 Project co financed by the European Social Fund Sectoral Operational Programme Human Resources Development 2007 - 2013 Invest in people! http://www.imipqnet.ro GOVERNMENT OF ROMANIA Ministry of Education European Union GOVERNMENT OF ROMANIA Ministry of Labour, Family, Social Protection and Elderly MASOPHRD European Social Fund SOP HRD 2007-2013 Structural Instruments 2007 - 2013

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Page 1: Insurance agent insurance broker

Invest in people!

EUROPEAN SOCIAL FUND

Sectoral Operational Programme Human Resources Development 2007 - 2013

Priority Axis 3 "Increasing adaptability of workers and enterprises"

Key Area of Intervention 3.3 " Development of partnerships and encouraging initiatives for

social partners and civil society."

Project Title: “Network of Competent Authorities for Professional Qualifications in Romania

(IMI PQ NET Romania)"

Beneficiary: Ministry of National Education

Contract no. POSDRU/93/3.3/S/53132

GUIDE ON COMPETENCE CERTIFICATION AND QUALIFICATION RECOGNITION

FOR THE INSURANCE AGENT AND INSURANCE BROKER

Author: Dr. Irina Dumitriu

July 2013

Project co financed by the European Social Fund

Sectoral Operational Programme Human Resources Development

2007 - 2013

Invest in people!

http://www.imipqnet.ro

GOVERNMENT OF ROMANIA Ministry of Education

European Union

GOVERNMENT OF ROMANIA Ministry of Labour, Family, Social Protection

and Elderly MASOPHRD

European Social Fund SOP HRD 2007-2013

Structural Instruments 2007 - 2013

Page 2: Insurance agent insurance broker

TABLE OF CONTENTS

INTRODUCTION..............……………………………………………...…………………….3

1. REGULATORY SITUATION IN ROMANIA AND OTHER EU MS OF THE

INSURANCE AGENT AND INSURANCE BROKER PROFESSIONS…….………...…….5

2. COMPETENCES CERTIFICATION PROCEDURES APPLIED BY THE CA FOR THE

INSURANCE AGENT AND INSURANCE BROKER PROFESSIONS...............................18

3. RECOGNITION PROCESSES OF QUALIFICATIONS ACQUIRED IN OTHER EU MS

IN ORDER TO PRACTICE THE INSURANCE AGENT AND INSURANCE BROKER

PROFESSIONS…………………………………………………………................................22

4. EXERCISE OF THE INSURANCE AGENT AND INSURANCE BROKER

PROFESSIONS IN THE EU....................................................................................…...…….32

5. CONCLUSIONS.…………………………………………………………………………..37

BIBLIOGRAPHY…………………………………………………………………………….39

ABBREVIATIONS...………………………………………………………………………...41

USEFUL LINKS……………………………………………………………………………...44

Page 3: Insurance agent insurance broker

INTRODUCTION

The Guidelines on competence certification and qualification recognition for the insurance

agent and insurance broker professions is one of the results of the “Network of Competent

Authorities for Professional Qualifications in Romania (IMI PQ NET Romania) Project "

implemented by the Ministry of National Education (MEN) in partnership with the National

Qualifications Authority (ANC) and the Institute for Social Policy (IPS), co-financed by the

European Social Fund through the Sectoral Operational Programme Human Resources

Development 2007-2013 (SOP HRD)

Within the IMI PQ NET Romania project there have been analyzed, together with the

competent authorities (CA) members of the project working group, the procedures for

validation and certification of competences and qualifications recognition processes for each

regulated profession separately and, on that basis, there have been developed standard scheme

for validation / certification of competences procedure and for the qualifications recognition

process for corresponding regulated professions. The final result of these activities is the

paper "Standard guiding terms of reference for the procedures validation and certification of

competences and qualifications recognition processes", which can be accessed

at…………………………………………………

This paper includes the basic terminology (definitions of terms used also in the guidelines)

and standardization schemes for the certification of competences and qualifications

recognition processes and therefore it was the basis for the elaboration a number of 30

guidelines for certification and recognition for different regulated professions, guidelines

aimed at supporting CA from Romania in their efforts to standardize these procedures and

processes by informing them about the practices of counterparts CA from other Member

States (MS) of the EU.

However, each individual guideline will address individuals which have acquired

qualifications in the respective areas of activity in Romania and want to practice the

profession in one of the EU MS presented in the guide.

The analysis was performed for Romania and another 8 EU MS (Austria, Czech Republic,

Denmark, Germany, Italy, United Kingdom, Netherlands and Spain), but the guidelines also

includes some general information resulting from researching the database with regulated

professions from all MS of the EU, the European Economic Area (EEA) and the Swiss

Confederation, developed by the European Commission (EC) Directorate General for Single

Internal Market (DG Internal Market) (http://ec.europa.eu/internal_market/qualifications/regprof

/index.cfm?newlang =en). The authors of the guidelines have studied the European legislation

and of the respective states regarding the acquiring of qualifications, education and vocational

training system, types of documents for competences certification (diplomas, certificates,

certificates of competency, professional titles), regulations regarding the recognition of

qualifications and the regulated professions under Directive 2005/36/EC on recognition of

professional qualifications, as well as, if necessary, sectoral specific directives In the case of

some EU MS analyzed (Denmark, Germany, Italy, UK, Netherlands and Spain); there have

been organized study visits with the participation of the representatives of IMI PQ NET Ro

Network members established within the project, and also MEN and ANC experts. During the

visits, meetings were organized with representatives of the national CA but also CA which

manages various regulated professions; occasions on which the guidelines authors were able

to gather more specific information from the source.

In conclusion, the realization of the Guidelines on competence certification and qualification

recognition for the insurance agent and insurance broker professions aims to:

Page 4: Insurance agent insurance broker

• providing to the stakeholders the informations on the certification of competence and

recognition processes applied by CA from other EU MS for professions insurance agent and

insurance broker, professions that in Romania were originally regulated the Commission

Insurance Supervision (CSA), and are now regulated by the new Financial Supervisory

Authority (FSA);

• inform all persons who have acquired the financial auditor qualification in Romania and

wish to perform activities in the field of insurance mediation in one of the EU MS presented

in the guide.

Taking into account these two major objectives referred to in of this guideline, we should note

both the opportunity of its current drafting and its limitations due to the events in the global

financial markets during the period in which it was realised:

• on the one hand, we believe that a comparative analysis of the regulation of the professions

in the mediation of insurance products (including re-regulation processes in progress) in

several EU MS is welcome for the insurance industry in Romania;

• on the other hand, due to the re-regulation of international financial markets and of the EU

MS, the information presented in the guide is highly "perishable", thus resulting the urgent

need of updating it quick enough in order make the guide remain relevant for the public

interested in practicing the professions of insurance products mediation in Romania or in one

of the EU MS presented.

1. REGULATORY SITUATION IN ROMANIA AND IN THE OTHER EU MS OF

INSURANCE AGENT AND INSURANCE BROKER PROFESSIONS

The current European regulatory framework on the recognition of professional qualifications

acquired in EU MS is composed primarily by the Directive 2005/36/EC of 7 September 2005

on the recognition of professional qualifications but also by a number of sectoral directives as

Directive 2002/92/EC in the case of from insurance brokers.

The Directive 2005/36/EC establishes a system for recognition of professional qualifications

in order to improve the EU labor market flexibility, to continue liberalization of the provision

of services, to encourage automatic recognition of qualifications and simplify the

administrative procedures. This directive applies to all European citizens who wish to

exercise a regulated profession either as self-employed or as an employee in other MS than

that in which they obtained their professional qualifications and make distinction between

"freedom to provide services "and" freedom of establishment” based on criteria such as

duration, frequency, regularity and continuity of service provision.

From the point of view of the way in which can be done the recognition of professional

qualifications covered by it, the Directive 2005/36/EC covers the following recognition

systems:

• The automatic recognition system of certified qualifications by professional experience in

certain industrial, craft and commercial activities for which the items taken into account for

the recognition of professional experience are the length and its type and prior formation

proven by a certificate recognized by the Member State or considered valid by a professional

body,

• The system of automatic recognition of qualifications for the professions of doctor, nurse,

dentist, veterinary surgeon, midwife, pharmacist and architect, for which automatic

Page 5: Insurance agent insurance broker

recognition of qualifications is based on the coordination of the minimum training conditions,

including minimum duration of studies,

• The general system for qualifications recognition - system which applies to professions that

are not regulated by specific rules of recognition and to certain situations in which the holder

of professional qualification does not meet the conditions set out in other recognition systems

,system based on the principle of mutual recognition, without prejudice application of

compensatory measures when there are significant differences between the training acquired

by the person concerned and the necessary training in the host MS (adaptation period no more

than three years or aptitude tests).

In terms of the qualifications level subject to the general system of recognition, the Directive

2005/36/EC distinguish five levels of professional qualifications:

an attestation of competence issued by a Competent Authority in the home Member

State, certifying either that the holder has acquired general knowledge corresponding

to secondary or high school education, or a training course not forming part of a

certificate or diploma, or a specific examination without prior training, or full-time

pursuit of the profession for three consecutive years;

certificate attesting to a successful completion of technical or professional or general

secondary education, supplemented by professional training;

diploma certifying successful completion of training at post-secondary level duration

of at least one year or vocational training which prepares the trainee for an comparable

level of responsibilities and functions;

diploma certifying that the holder has successfully completed training of post-

secondary or university level of at least three and not more than four years' duration;

diploma certifying that the holder has successfully completed training of post-

secondary or university level of at least four years' duration.

The regulated professions in the field of financial audit fall under the qualifications

recognition general system, qualification level certifying successful completion of

training at post-secondary education, university education of 3-4 years or at least four

years.

As in the case of all the other European directives, all the EU MS were obliged to comply

with the Directive 2005/36/EC trough its transposition into national legislation. Therefore, the

relevant information on the procedure and the rules for the recognition processes valid in each

MS are contained in the national legislation through which it was transposed the Directive

2005/36/EC and can be obtained from the National Contact Points (National Contact Points)

for qualifications recognition, which all Member States were obliged to establish (they are

listed on http://ec.europa.eu/internal_market/qualifications/contact/national_contact_points_en.htm).

In the Directive 2005/36/EC explicitly states: “This Directive applies, concerning the right of

establishment and the provision of services, without prejudice to other specific legal

provisions regarding the recognition of professional qualifications, such as those existing in

the field of transport, insurance intermediaries and statutory auditors”. 1

1 Directive 2005/36/EC on the recognition of professional qualifications p. 7, (42), at

http://www.umftgm.ro/fileadmin/consultare_publica/bibliografie/Directiva_2036_2005_20privind_20recunoaste

rea_20calificarilor.pdf

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Therefore, in order to analyze the regulation of the professions related to mediation of the

insurance products, it was necessary to study the specific directive, Directive 2002/92/EC of

the European Parliament and of the Council on insurance mediation as well as the European

documents regarding proposals for its revision2 and the main documentary source regarding

the current situation of the regulation at EU level for acquiring qualifications and access to

labour market in the insurance sector was represented the EIOPA report (European Insurance

and Occupational Pensions Authority) with the conclusions of the survey realized during the

period March-September 2012 regarding the vocational training standards applied by CA of

the EU MS in the insurance sector– „Report on a mapping exercise on Industry Training

Standards applied by national competent authorities”, din septembrie 20123.

The Directive 2002/92/EC of the European Parliament and the Council on insurance

mediation (IMD1) is the only EU legislation which regulates the point of sale of insurance

products so as to ensure the rights of the consumer. It was adopted on 9 December 2002 and

had to be transposed by Member States by 15 January 2005. The Directive is a minimum

harmonisation instrument containing high level principles and has been implemented in the 27

Member States in substantially different ways4. The need to review IMD1 was already

acknowledged during the implementation check carried out by the Commission in 2005-2008.

In the international financial crisis and global efforts to re-regulate the financial markets, in

November 2010, the G20 asked the Organisation for Economic Co-operation and

Development (OECD), the Financial Stability Board (FSB) and other relevant international

organisations to develop common principles in the field of financial services in order to

strengthen consumer protection. The draft G20 high level principles on financial consumer

protection underline the need for proper regulation and/or supervision of all financial service

providers and agents that deal directly with consumers. Acoording to these principles, the

consumers should always benefit from comparable standards of consumer protection.

In this context, the revised Directive (IMD2) seeks to improve regulation in the retail

insurance market in an efficient manner. It aims at ensuring a level playing field between all

participants involved in the selling of insurance products and at strengthening policyholder

protection. Among the global objectives of the revision is included also to “ensure sellers'

professional qualifications match the complexity of products sold; simplify and

approximate the procedure for cross-border entry to insurance markets across the EU.”

Pending the adoption of IMD2 however, we quote the following definitions insurance

mediation activities and of different insurance mediation professions drawn from IMD15:

insurance mediation means the activities of introducing, proposing or carrying out other

work preparatory to the conclusion of contracts of insurance, or of concluding such

contracts, or of assisting in the administration and performance of such contracts, in

particular in the event of a claim.

2 EC – Proposal for a Directive of the European Parliament and of the Council on insurance mediation (recast),

Brussels, COM (2012) 360/2, 2012 (0175 (COD) 3 EIOPA - Report on a mapping exercise on Industry Training Standards applied by national competent

authorities, EIOPA-BoS-12092, 28 September 2012 – at https://eiopa.europa.eu/fileadmin/tx_dam/files/

publications/reports/EIOPA-BoS-12092_Report_on_mapping_exercise_on_Industry_Training_Standards_

applied_by_NCAs.pdf 4

Explanatory Memorandum for revision of the Directive 2002/92/CE, p.1 , pct.1, at http://eurlex.europa.eu/

LexUriServ/LexUriServ.do?uri=COM:2012:0360:FIN:RO:DOC 5 The Directive 2002/92/EC of the European Parliament and the Council on insurance mediation adopted on 9

December 2002 http://www.csa-isc.ro/files/directive/2002_92.pdf

Page 7: Insurance agent insurance broker

reinsurance mediation means the activities of introducing, proposing or carrying out other

work preparatory to the conclusion of contracts of reinsurance, or of concluding such

contracts, or of assisting in the administration and performance of such contracts, in

particular in the event of a claim.

insurance intermediary means any natural or legal person who, for remuneration, takes up

or pursues insurance mediation;

reinsurance intermediary means any natural or legal person who, for remuneration, takes

up or pursues reinsurance mediation;

tied insurance intermediary means any person who carries on the activity of insurance

mediation for and on behalf of one or more insurance undertakings in the case of

insurance products which are not in competition but does not collect premiums or

amounts intended for the customer and who acts under the full responsibility of those

insurance undertakings for the products which concern them respectively.

The insurance products can be distributed by various types of persons or institutions, such

as agents, brokers and "bank assurance" operators; equality of treatment between

operators and customer protection requires that all these persons or institutions be covered

by this Directive.

As occupations of insurance intermediaries in the International Standard Classification of

Occupations developed by the International Labor Organization (ILO) in 2008, ISCO-08,

based on which all EU MS were forced to revise national classifications of occupations since

2011 there is the basic group 3321 Insurance Agents / Insurance Representatives / agents

d'assurances (“Insurance representatives advise on insurance and sell life, accident,

automobile, liability, endowment, fire, marine and other types of insurance to new and

established clients.”). In this group, each country enroll in national classification the

occupations / professions available on its labor market.

Romania currently has registered in base group 3321 of the Classification of Occupations in

Romania (COR) two professions: insurance agent, COR code 332101, insurance broker, COR

code 332 102.

In the Annex to its report6, EIOPA conducted a review of the provisions of the European

legislation related to knowledge and qualifications required for practicing insurance mediation

professions. Thus, apart from the provisions of Directive 2005/36/EC on the recognition of

qualifications, from the insurance and reinsurance sector specific legislation, there are listed

the following provisions:

in IMD1 (Directive 2002/92/CE) - The coordination of national provisions on professional

requirements and registration of persons taking up and pursuing the activity of insurance

mediation can therefore contribute both to the completion of the single market for

financial services and to the enhancement of customer protection in this field; the

insurance and reinsurance intermediaries should be registered with the competent

authority of the Member State where they have their residence or their head office,

provided that they meet strict professional requirements in relation to their competence,

good repute, professional indemnity cover and financial capacity; they possess appropriate

knowledge and ability, as determined by the home Member State of the intermediary and

6 EIOPA - Report on a mapping exercise on Industry Training Standards applied by national competent authorities, EIOPA-

BoS-12092, 28 September 2012, pag.19 - 30

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these professional requirement are permanently fulfilled; the insurance and reinsurance

intermediaries should be registered with the competent authority of the Member State,

including tied ones, only if that they meet professional requirements; Member States shall

ensure that insurance intermediaries— including tied ones — and reinsurance

intermediaries are removed from the register if they cease to fulfil the professional

requirements; Member States provide for appropriate sanctions in the event of an

insurance or reinsurance intermediary's failure to comply with national provisions

in IMD2 (the proposal of revision of IMD1) It is important to guarantee a high level of

professionalism and competence among insurance and reinsurance intermediaries and the

employees of direct insurers who are involved in activities preparatory to, during and after

the sales of insurance policies and therefore, their professional knowledge o match the

level of complexity of these activities and to be ensured continuous education; in order to

enhance cross border activities, it should be introduced principles regulating mutual

recognition of intermediaries' knowledge and abilities; a national qualification

corresponding to the level 3 under the European Qualification Framework should be

accepted by a host member state as demonstrating that an insurance or reinsurance

intermediary meets the requirements of knowledge and ability which are a condition of

registration in accordance with the provisions of IMD2 in the host MS

In addition to the abovementioned, EIOPA performs various studies, surveys, comparative

analyzes on how MS have transposed all these provisions from european legislation, as it

prepares for additional duties in this field proposed by the EC trough IMD2, namely, that in

the context of delegated acts, it should:

specify what is meant by the phrase” the notion of adequate knowledge and ability” of

the insurance and reinsurance intermediary

specify appropriate criteria for determining the level of professional qualifications,

experiences and competences required for carrying on insurance mediation;

specify the steps that insurance intermediaries and insurance undertakings might

reasonably be expected to take to update their knowledge and ability through

continuing professional development in order to maintain an adequate level of

performance

In the context it is mentioned that EIOPA has responsibilities in the development of training

standards in the insurance, provided right in its founding Regulation7: “to take a leading role

in promoting transparency, simplicity and fairness in the market for consumer financial

products or services across the internal market, including by…..developing training standards

for the industry”

In terms of Directive 2005/36/EC on the recognition of professional qualifications, the

situation varies significantly from one MS to another. In some MS, insurance mediation

7 Regulation (EU) no. 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a

European Supervisory Authority (European Insurance and Occupational Pensions Authority, art.9(1)(c)

Page 9: Insurance agent insurance broker

professions are not listed as regulated professions at national level (Germany8, Italy9,

Romania10, Spain11), in other MS they appear on the list of regulated professions as a generic

category that includes all financial intermediation professions (Netherlands), and other MS

have included these professions among the regulated professions and registered them in IMI -

the electronic platform for the exchange of information between EU MS AC, SEE, Helvetic

Federation and towards the mutual recognition of professional qualifications. Therefore, we

can say that there are quite a few EU MS who have introduced the principles of mutual

recognition of qualifications for the insurance sector and have entered the insurance

intermediation regulated professions in the IMI system.

In Table 1.1 is given the situation of regulated professions that have been submitted by 7 MS

to the CE database for the generic category “insurance broker”, the only currently existing

generic category in the IMI system for the insurance intermediaries

extracted by the author from all the generic categories listed above, in which 25 MS of EEA

and Swiss Confederation registered 39 professions that was reserved primarily for the

financial audit activity. Therefore, as can be seen, MS enrolled both professions as agents and

brokers in this generic category and the " insurance practitioner" profession.

8 The list of regulated professions in germany, at

http://ec.europa.eu/internal_market/qualifications/regprof/index.cfm?action=regprofs&id_country=3&quid=1&mode=asc&

maxRows=*#top

9 The list of regulated professions in Italy, at

http://www.politichecomunitarie.it/attivita/17592/riconoscimento-delle-qualifiche-professionali-guida-allutente

10 The list of regulated professions in Romania, at

http://ec.europa.eu/internal_market/qualifications/regprof/index.cfm?action=regprofs&id_country=27&quid=1&mode=asc&

maxRows=*#top

11 The list of regulated professions in Spain, at

http://ec.europa.eu/internal_market/qualifications/regprof/index.cfm?action=regprofs&id_country=5&quid=1&mode=asc&

maxRows=*#top

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Table 1.1

The regulated professions in the generic category of insurance broker in the IMI system

MS Name of the profession in the

MS / Romanian translation Name of CA Qualification level

AUSTRIA Versicherungsvermittlung/ broker în asigurări(Insurance Broker)

Bundesministerium für Wirtschaft, Familie

und Jugend / Federal Ministry for Economics, Family

and Youth www.bmwa.gv.at

Automatic recognition of qualifications attested by

professional experience

Annex IV / undefined level of qualification

CZECH REPUBLIC Pojišťovací agent/ agent de

asigurare (Insurance Agent)

Česká národní banka/ Czech National

Bank www.cnb.cz

Automatic recognition of

qualifications attested by

professional experience

Annex IV /

undefined level of qualification

DENMARK Forsikringsformidler/ broker în

asigurări ((Insurance Broker))

Finanstilsynet/ Danish Financial

Supervisory Authority/ www.finanstilsynet.dk

General System – primary aplication /

PS3 - Post-secondary diploma (3-

4years) , Article 11 d

FRANCE

Agent général d'assurance/ agent general de asigurare (General

Insurance Agent)

Autorité de contrôle prudentiel et de

résolution/ Prudential Control and Resolution Authority

http://www.acpr.banque-

france.fr/lacpr.html

General System – primary

aplication /

PS3 - Post-secondary diploma (3-4years) , Article 11 d

MALTA

Insurance sub-agent / Registered

insurance broker/sub-agent de

asigurare(Insurance Sub-agent)/ broker în asigurări

înregistrat(Registered Insurance

Broker)

Association of Insurance Brokers/

General System – primary

aplication / PS3 - Post-secondary diploma (3-

4years) , Article 11 d

UNITED KINGDOM Chartered Insurance Broker/

broker în asigurări certificat

Chartered Insurance Institute/

www.cii.co.uk

General System – primary

aplication /

PS3 - Post-secondary diploma (3-4years) , Article 11 d

HUNGARY Chartered insurance practitioner/

practician în asigurări certificat

Pénzügyminisztérium/ Ministry of Finance

General System – primary or

secundary aplication(undefined) /

DSE- Post-secondary diploma, incl. Annex II (ex.92/51, Annex

C,D), Art.11 c

Source: done by the author with information from the EU database for regulated professions,

the “Insurance broker” generic cathegory, at http://ec.europa.eu/internal_market/qualifications

/regprof/index.cfm?action=profession&id_profession=5210 (at 30.04.2013)

In Romania, the two professions are currently regulated by the Financial Supervisory

Authority - FSA, the authority that took over the prerogatives of the three separate

supervisory authorities - Insurance Supervisory Commission (CSA), the National Securities

Commission (CNVM) and the of the Private Pension System Supervision Commission

(PPSSC).

CSA has regulated from 2010, through a series of successive orders (the orders 6 and 7 from

2010, the orders 10 and 11 from 2011, the orders 8 and 9 from 2012), the access to practice in

the case of the insurance intermediaries generic category, in which fall, according to CSA

Order nr.9/2012 amended and supplemented, for the implementation of the Norms regarding

the professional qualifications and training of insurance intermediaries: natural persons

insurance agents, sub-agents, natural persons exercising the bancassurance activity, insurance

/ reinsurance brokers, brokerage assistant natural persons; own personnel involved in

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insurance mediation of brokerage assistants legal entities; own personal of insurance and /

reassurance broker, which has as main attribution the mediation of insurance and / or

reinsurance contracts; managers of insurance agents legal entities, of the bancassurance

activity, persons designated to manage insurance mediation activity to the brokerage

assistants legal persons, managers of the brokerage assistants - legal entities with sole object ,

executive managers of insurance and / or reinsurance brokers.

In Austria, the Directive 2002/92/EC has been transposed into national legislation by the

amendment in 2005, of the Gewerbeordnung - GewO (Law on the trade, crafts and industry)

and of the Maklergesetz (Law on brokers / agents). The CA for the supervision of insurance

intermediaries, except banks, is Bundesministerium für Wirtschaft, Familie und Jugend -

BMWFJ (Federal Ministry for Economy, Family and Youth) trough

Bezirksverwaltungsbehörde (its administrative authorities at local level). The Banks can carry

out mediation of insurance products only with the approval of the CA on supervision of

financial markets, Finanzmarktaufsichtsbehörde - FMA (Austrian Financial Market

Authority). This, based on Versicherungsaufsichtsgesetz - VAG (Law on the Insurance

Supervision), supervise inclusively the conformity with the information requirements

established for intermediaries, through on-site inspections.

The Czech Republic has transposed the Directive 2002/92/EC by Act No. 38/2004 Coll. of the

Czech Republic on Insurance Intermediaries and Independent Loss Adjusters on (Law

38/2004 on insurance intermediaries and independent loss adjusters) which came into force on

1 January 2005. The supervision CA of the insurance industry is Česká národní banka (Czech

National Bank), but the administration of Registry of insurance intermediaries and loss

adjusters is under the Ministry of Finance's responsibility.

In Denmark, the Directive 2002/92/EC has been transposed into national legislation trough

Bekendtgørelse af lov om forsikringsformidling (Insurance mediation law no. 930 of 18

September 2008) and the formation of intermediates is regulated by the Administrative Order

no. 825 of 3 July 2007 on education for insurance brokers. The CA for all financial markets is

Finanstilsynet (Danish Financial Supervisory Authority - DFSA / Danish Financial

Supervisory Authority).

In Germany, similar to Austria, the Directive 2002/92/EC has been transposed into national

legislation by the amendment of Gewerbeordnung - GewO (Law on the trade, crafts and

industry) and of the Versicherungsvermittlerverordnung - VersVermV (Act on Insurance

Mediation). The Bundesministerium für Wirtschaft und Technologie - BMWi (Federal

Ministry of Economics and Technology) is the CA, but it has delegated its responsibilities to

the Deutsche Industrie-und Handelskammertag - DIHK (Association of German Chambers of

Industry and Commerce). Thus, the implementation of Directive 2002/92/EC is ensured by

Industrie-und Handelskammern - IHKs (chambers of industry and commerce of lands /

federal states of Germany) which are responsible for the registration, licensing and direct

supervision of insurance intermediaries.

According to the Versicherungsaufsichtsgesetz - VAG (Insurance Supervision Law on the),

BaFin - Bundesanstalt für Finanzdienstleistungsaufsicht (Federal Financial Supervisory

Authority) is responsible for micro-prudential supervision of financial banking, insurance and

securities service providers (entities on the banking market, insurance market and capital

market). In this capacity, BaFin supervise the activity of employees insurance companies

which have responsibilities in mediation of the insurance products.

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Italy is a MS in which it has to be pursued the process of possible revision of national

legislation regulating and supervising the insurance market (Decreto Legislativo 7 settembre

2005, n.209 – Codice delle assigurazioni private / Legislative Decree of September 7, 2005,

No. 209 - Code of private insurance), as from 1 January 2013 it has been created a new

supervisory authority, Instituto per la Vigilanza Sulla Assigurazioni - IVASS (Institute for

insurance Supervision), which took over all the duties of the former authorities - Instituto per

la Vigilanza Sulla's private Assigurazioni di Interesse Collettivo (ISVAP), but whose

chairman is the Director General of the Bank of Italy, whose status has been approved by the

central bank of Italy.

Also in the UK, from April 1, 2013, the Financial Services Authority Financial Services

Authority) has been replaced by the Financial Conduct Authority - FCA (Financial Conduct

Authority) and the Prudential Regulation Authority - PRA (Prudential Supervisory Authority)

along with the central bank - Bank of England. Directive 2002/92/EC has been transposed

into national law by the amendment of Financial Services and Markets Act 2000 (Financial

Services and Markets Act The 2000) trough Order no. 1676 of 2003 (Statutory Instrument

2003 No. 1676).

In the Netherlands, the field of financial service, the list of regulated professions12 does not

include specific professions, but two broad categories of occupational areas, we could say:

werknemer van een financiële dienstverlener die zich bezighoudt met het verlenen van

financiële diensten aan consumenten/employee of a financial services provider who grants

financial services to consumers and şi feitelijk leidinggevende van een financiële

dienstverlener die zich bezighoudt met het verlenen van financiële diensten aan

consumenten/de facto manager of a financial services provider who grants financial services

to consumers. Therefore, the Netherlands does not have registered in the IMI system any of

the specific professions of the financial services sector - capital market broker, loan broker,

insurance broker, financial consultant, investment consultant, etc.. - although all of these

professions fall into the first category of the regulated professions list.

College Deskundigheid Financiële Dienstverlening - CDFD (Financial Services Competences

College / Council) is the CA for the category of professions representing employees, and

Ministerie van Financiën (Ministry of Finance) is the CA for managers. The two categories

include all the specific professions on all financial markets because The Netherlands

Authority for the Financial Markets - AFM (The Netherlands Authority for the Financial

Markets) supervises and regulates, together with De Nederlandsche Bank - DNB (Dutch

Central Bank), all financial - banking, non-banking, equity, insurance and private pensions

markets - authorizing access of financial service providers in all these markets.

The regulation of the two categories of professions in the financial services sector is foreseen

in the Financial Supervision Act - FSA (Financial Supervision Act), which entered into force

on 1 January 2007. Based on this law, the institutions / companies that operate on financial

markets (banks, non-banking financial institutions, insurance companies / reinsurance,

investment companies, investment funds, pension funds, etc..) may be authorized only if all

employees of the basic / specific activity of financial services provision have passed the FSA

exam and follow the training / upgrading knowledge programs every 18 months for

companies with less than 50 employees in such positions / functions or only if all managers

12

The list of regulated professions in the Netherlands – at

http://ec.europa.eu/internal_market/qualifications/regprof/index.cfm

Page 13: Insurance agent insurance broker

have passed the FSA exam and follow the training programs every 18 months for companies

with over 50 employees in position / functions specific to core business.

CDFD, as the CA for employees of financial service providers, has been established as a

government institution by royal decree in 2006 and is coordinated by the Ministry of

Finance13. It's basically a council composed of experts from the financial services sector, led

by a president who is elected from outside the financial system, and its mission is to provide

legal advice and supervision of mandatory continuing vocational training of employees in the

financial services sector. The Council is working with authorized mandatory training

providers and the examination / assessment authorized institutions, which are necessarily

separate entities of training providers.

Similar to the situation until this year in Romania, in Spain14 the financial markets are

supervised by separate authorities, depending on market: Banco de España (Bank of Spain)

for the banking sector, Comisión Nacional del Mercado de Valores for the capital market and

the Dirección General de Seguros y Fondos de Pensiones - DGSFP (Directorate General of

insurance and pension Funds) for insurance and private pensions market. The main legislation

in the field of insurance consists of: Texto Refundido Ley de Odenación y Supervisión de los

Seguros Privados - TRLOSSP (Law on the organization and supervision of private

insurances), Ley de Mediación de los Seguros Privados - LMSP (Law on Private Insurance

Mediation), Ley de Contrato de Seguro - LCS (Law on the insurances contract) and the

Reglamento de Ordenación y Supervisión de los Seguros Privados -ROSSP (the Code of

organisation and supervision of private insurances).

According to TRLOSSP, The Ministry of Economy and Competitiveness (MEC) is the

agency empowered to supervise insurance activities, with the exception of mutual insurers

that operate solely within an Autonomous Community where the Autonomous Community

has agreed to assume their supervision. DGSFP is practically a department within the MEC

and that is why it is funded by State budget, and The Director General of the DGSFP is

directly appointed by the Minister of Economy. In this context, DGSFP does not levy any fees

on industry participants, except a registration fee on intermediaries, and this fees as well as

administrative fines collected are passed over to the Treasury

2. COMPETENCES CERTIFICATION PROCEDURES APPLIED BY THE CA FOR THE

INSURANCE AGENT AND INSURANCE BROKER PROFESIONS

A synthetic comparative analysis of the requirements for knowledge and aptitudes / abilities

for insurance intermediaries authorization and the requirements for their CPD / continuous

professional development in the analyzed EU MS is presented in Table below.

Table 2.1

13

Informations obtained in November 2012, at the meeting with Madame Risha Schwalbe at Financial Services

Competences College / Council – CDFD, during the study visit in the Netherlands

14 Informations obtained from IMF Country Report no.12/139 - Spain: IAIS Insurance Core Principles: Detailed Assessment

of Observance, June 2012, at http://www.imf.org/external/pubs/ft/scr/2012/cr12139.pdf

Page 14: Insurance agent insurance broker

The situation of qualifications required for practicing the professions of insurance agent and

insurance broker in the analyzed EU MS

SM Initial training requirements Evaluation / examination of

the knowledge and aptitudes

/ abilities

CPD / continuous

professional

development

Sanctions for failure to

comply with the requirements

of knowledge and aptitudes /

abilities and CVT

Romania

Differentiated requirements for

insurance brokers compared to

insurance agents. Graduating professional training

programs in the insurance field

Examination by the IMA on

completion of professional

training programs from one of authorized providers of CSA

and registration in the

intermediaries register based on the exam graduation certificate

35 hours for

executive

managers of

insurance

brokers and 20 hours for

intermediaries

natural persons mandatory

every 2 years

for executives and managers

and every 3

years for other intermediaries

Denial of registration for the

first time in the intermediaries register if it

does not pass the

qualification exam. It is provided a period of

max. 6 months, from the

communication date of the first result for successful

reexamination (max. 2

reexamination). Insurance and / or

reinsurance companies,

insurance and / or reinsurance brokers, legal

entities insurance agents are

required to removed from the intermediaries register

the people who do not

permanently meet the professional requirements.

Austria

Qualifications obtained in the dual

system of education, including

apprenticeship (3 years for brokers) and a period of practice and training (3

years for brokers) that ends with an

exam. Employees of legal entities brokers

must demonstrate that they have

participated in internal courses (tutorials) regarding the services they

promote.

Examination and registration

with CA

(Federal Ministry for

Economy, Family and Youth manages the central register

of of insurance intermediaries,

centralizing the data from the local authorities, which

records those who have

passed the exam)

no formal CPD

requirement, but

from 2012 is debated the

application of a

obligatory

Denial of registration if it does not pass the initial exam

Czech Republic The law provides for 3 levels of

qualification: - Basic level of professional

competences for tied and subordinates

intermediates and independent loss adjusters;

- Medium level of professional

competence for insurance agents; - high / higher level of professional

competences for insurance brokers.

The level of qualification can also be proved by:

- Certificate of graduation from a

university or a to high school with insurance specialization program + min.

2 years practical experience in the

insurance sector; - Min. 2 years practical experience in

the insurance sector + exam with a

special committee established by the Ministry of Finance

Examination by the a special committee (for those who have

not specialized initial training)

and registration in the register managed by the Ministry of

Finance

YES, updating with legislative changes

Denial of registration if it does not pass the initial exam

In the case of failure of the

commitment of CVT, is given a deadline by which

the CVT must be done or

the activity of the intermediary concerned is

suspended until the updating

of knowledge and aptitudes / abilities

Denmark Post-secondary studies (3-4 years) and

profesional experience.

Requirements differentiated between brokers and agents.

Ca persoane fizice, numai

brokerii au obligaţia să se

înregistreze în registrul administrat de DFSA, pe baza

unei examinări.

Agenţii sunt înregistraţi de către

societăţile de asigurare în registrul Asociaţiei

Asiguratorilor

no formal CPD

requirement

Denial of registration if it does

not pass the initial exam , in

case of brokers

Page 15: Insurance agent insurance broker

Germany Qualifications obtained in the dual

system of education (in which the chambers of commerce

are responsible for practical training/

formation of aptitudes / abilities) Higher requirements for brokers and

agents than for other categories of

intermediaries

Examination (in accordance

with section 34 of the GewO) and registration by land

chambers of commerce

(IHK) for brokers, agents (excluding tied agents) and

insurance consultants

no formal CPD

requirement

Denial of registration if it does

not pass the initial exam

Italy Requirements differentiated by

categories of intermediaries:

- Agents and brokers

- Sub-agents and collaborators

Examination by the CA

(IVASS) at the registration of

brokers and agents and by insurance companies for sub-

agents and collaborators

CVT mandatory

of 30 hours / year

and in the case of

launching new

products on the

market and / or

amending legislation.

50% of CVT can

be e-learning

Denial of registration if it does

not pass the initial exam

IVASS if it finds, by

companies inspections at or

by verification of documents,

that a sub-agent do not

possess the Certificate declared at Registration, it is

radiated from the register and

lodges a complaint of misrepresentation to public

competent authorities

United Kingdom Differentiated requirements: - investment insurances

- Insurance without an investment

component. The law makes no distinction between

agents and brokers.

Evaluation of the agents is made by the employers trough

inspections carried out to

companies by the CA

CVT mandatory 35 hours / year

only for

intermediates of investment

Insurance

Denial of registration if it does not pass the initial exam

In case of non-compliance

with conformity obligations and probity ("fitness &

probity") public admonition /

censure, fine or even imprisonment, as appropriate.

Netherlands secondary superior vocational training

(2-4 years) or adequate work

experience +

compulsory training program (FSA)

of 120 hours: basic knowledge of the financial markets + specific

knowledge in product categories:

- Life insurance; - Insurance against damage;

authorized insurance broker;

- Authorized damage insurer. In 2014 it is intended the transition to

qualification training based on

occupational standards, qualifications level 3 CEC / EQF.

There are no requirements

differentiated between agents and brokers.

FSA Exam by professional

association accredited by

CDFD as examiners, organizations which are

diferent from the FSA

training providers

CVT mandatory

every 18 months in

order to update the knowledge of

specific legislation

and strengthening consumer

confidence

Denial of registration if it does

not pass the initial exam

Spain Grupa C (50 ore formare): personal de

suport al agenţilor şi brokerilor şi

brokeri de reasigurări neimplicaţi în finalizarea vânzărilor

Differentiated training requirements

(Insurance and Finance) training

provided by providers approved by DGSFP (who approves also the

training programs) on three categories

of intermediaries / employees of intermediaries legal entities:

Group A (500 hours training) mediation company managers, multi-

tied agents and bancassurance

technical directors; Group B (200 hours training)

exclusive agents, exclusive operators

and bancassurance technical directors, intermediaries employees performing

activities related to consulting,

concluding and progress of the insurance contracts;

Differential treatment at the

examination (aptitude test held by independent

institutions approved by the

DGSFP) between tied agents and multi-tied agents

YES, CVT

mandatory at least 60 hours every

three years

In the case they do not

comply the CVT requirements , they are suspended for a

period of up to 10 years or

disqualified from a leadership position.

Page 16: Insurance agent insurance broker

Group C (50 hours training) support

staff of agents and brokers and reinsurance brokers not involved in

the completion of sales

Source: done by the author with information from EIOPA, Report on a mapping exercise on

Industry Training Standards applied by national competent authorities 28 September 2012 at

information obtained from CDFD during the study visit in the Netherlands and the national

legislation of the analyzed MS

A special case in what concerns the qualifications in the insurance field is constituted by the

UK due to the institution of training and qualifications providing, Chartered Insurance

Institute - CII (Chartered Insurance Institute), an professional body for the professions of the

financial services market with international reputation, having over 100,000 members from

over 150 countries, which accept voluntary the standards of integrity, of technical and

professional competence and comply with the code of professional ethics imposed by CII.

Therefore, we consider it worthwhile to present below the insurance qualifications framework

developed by CII, insurance qualifications recognized and recorded in the National

Qualifications Framework in England by the Office of Qualifications and Examinations

Regulation – Ofqual (Office of Qualifications and Examinations Regulation).

CII insurance qualifications framework

Fellowship (Designation: FCII) MSc in Insurance and

Risk Management

unit credit rating Advanced Diploma in Insurance (Designation: ACII)

50 credits (991) London market

insurance

specialization

30 credits (530) Economics and

business

(590) Principles of

Takaful

(655) Risk

management

(820) Advanced

claims

(930) Advanced

insurance broking

(945) Marketing

insurance

products and services

(960) Advanced

underwriting

(990) Insurance

corporate

management

Diploma in Insurance (Designations: Dip CII, Dip CII (Claims))

30 credits NEW (P61) Life,

critical illness and

disability

underwriting

NEW

(P62) Life, critical

illness

and disability claims

(P91) Aviation and

space

insurance

(P97) Reinsurance

(P98) Marine hull

and

associated liabilities

Page 17: Insurance agent insurance broker

25 credits (P05) Insurance law

COMPULSORY

UNIT**

NEW

(P63) Long term

insurance

Business*

NEW

(P64) Private medical

insurance practice*

(P90) Cargo and

goods in

transit insurances

(P92) Insurance

business

and finance

COMPULSORY

UNIT**

(P93) Commercial

property

and business

interruption

(P94) Motor

insurance

(P96) Liability

insurances

20 credits

(P21) Commercial

insurance

contract wording

(P80) Underwriting

Practice

(P81) Insurance

broking

Practice

(P85) Claims practice

(P86) Personal

insurances

Certificate in Insurance (Designations: Cert CII/Cert CII (Claims)/Cert CII (London Market)/

Cert CII (Customer Service)/Cert CII (Health and Protection))

15 credits (IF1) Insurance, legal

and

regulatory

COMPULSORY

UNIT***

(IF2) General

insurance

business

(IF3) Insurance

underwriting

process

(IF4) Insurance

claims

handling process

(IF5) Motor

insurance

products

(IF6) Household

insurance

products

(IF7) Healthcare

insurance

products

(IF8) Packaged

commercial

insurances

(IF9) Customer

service in

Insurance

(LM2) London

market

insurance principles

and

practices

10 credits

(LM1) London

market

insurance essentials

Award for the Foundation Insurance Test

6 credits

(FIT) Foundation

Insurance Test

Key:

*These units will be examined for the first time in April 2013, with study material becoming

available in December 2012

** To satisfy the Diploma and Advanced Diploma compulsory unit requirements you can

either pass units P92 and P05 or alternatively 530 and P05

*** To satisfy the Certificate compulsory unit requirements you can either pass unit IF1 or

Page 18: Insurance agent insurance broker

alternatively the Award in London Market Insurance (achieved by completing units LM1 and

LM2)

CII offers CVT through the ASSESS (www.cii.co.uk/elearning ) and for insurance brokers,

CII Broker Academy offers both qualification programs and continuous professional

development programs (www.cii.co.uk/brokeracademy ).

3. QUALIFICATIONS RECOGNITION PROCESSES ACQUIRED IN OTHER EU MS IN

ORDER TO PRACTICE FOR THE INSURANCE AGENT AND INSURANCE BROKER

PROFESSIONS

The IMI system statistics realized based on data on the professionals mobility on the two

modalities of performance (through establishment / the exercise with permanent character of

their profession in another Member of the EU, EEA and Switzerland, or trough temporary

performance) and for each generic profession category individually, in accordance with the

842 generic categories registered in the database until now, is relevant for the insurance

broker, without making distinction between agents and brokers, as shown in Chapter 1. On

the other hand, the statistics do not fully reflect the process of recognition of qualifications of

insurance agents and insurance brokers, as there are SM which have provisions related to the

recognition of these qualifications in the specific legislation, but the CA for these professions

were not enrolled in IMI and therefore, recognition decisions are not recorded in the IMI

database. Making these remarks, we will present below the statistics extracted from the IMI

system for the generic category Insurance broker (insurance broker / insurance agent).

The actual situation of the 302 decisions taken throughout the reporting period in the IMI

system for the professions of insurance mediation is presented in Table 3.1.

Table 3.1

Statistics of decisions on qualifications recognition acquired in other EU MS, EEA and Swiss

Confederation for insurance mediation professions listed in the Insurance broker generic

category (1997/8 - 2012)

Host Country:

regulated professions

(2 countries which have received recognition

requests for establishment/permanent provision)

Qualification Country

of Origin

No. of positive

decisions

No. of negative

decisions

No. of

neutral

decisions

Total decisions

Austria:

Versicherungsvermittlung

(5 requests from 3 SM, all on the automatic

recognition of professional experience)

Germany 3 0 0 3

Luxembourg 1 0 0 1

United Kingdom 1 0 0 1

United Kingdom:

Chartered Insurance Broker

(84 applications from eight EU MS and Switzerland,

all with positive decisions on overall automatic system

Austria 1 0 0 1

Cyprus 4 0 0 4

Denmark 2 0 0 2

Switzerland 2 0 0 2

Page 19: Insurance agent insurance broker

without compensatory measures) France 2 0 0 2

Germany 3 0 0 3

Ireland 61 0 0 61

Latvia 1 0 0 1

Malta 8 0 0 8

United Kingdom:

Chartered Insurance Practitioner

(213 requests from eight EU MS and Switzerland)

Cyprus 1 0 0 1

Switzerland 1 0 0 1

France 3 0 0 3

Germany 7 0 2 9

Greece 3 0 0 3

Ireland 175 0 0 175

Italy 2 0 0 2

Luxemburg 1 0 0 1

Malta 17 0 0 17

Netherlands 1 0 0 1

TOTAL:

2 host MS

13 countries of origin 300 0 2 302

Source: made by the author with the data from the IMI system, the situation of decisions for

permanent provision, from insurance broker generic category at

http://ec.europa.eu/internal_market/qualifications/regprof/index.cfm?action=profession&id_

profession=2100&tab=countries&quid=2&mode=asc&maxRows=*#top (on 30.04.2013)

According to EIOPA, there are still very little practical experience in the recognition of

qualifications of insurance intermediaries, actually confirmed by the EU statistics presented in

the table above, if we consider that only two MS have registered in the system the reception

of recognition requests, and out of the 297 applications for which the UK has adopted

decisions to grant the British protected titles of chartered insurance broker and chartered

insurance practitioner, 236 applicants are Irish neighbours, and the 25 applicants and

respectively 5 applicants are from the former British colonies Malta and Cyprus.

In Graph 3.1 it can be observed that out of 302 decisions of recognition registered so far in the

IMI system for insurance agents and insurance brokers, the overwhelming majority (300

decisions) consists of positive decisions (applicants received recognition of qualification and

the right to practice the profession concerned), only 2 decisions (taken by the UK for the

requests of two German nationals for chartered insurance practitioner qualification

recognition) were neutral (applications are still pending), and there were no negative decision

(rejection of the application for the recognition of qualifications acquired in another MS).

Page 20: Insurance agent insurance broker

Graph 3.1 - Structure by type of decision for recognition of qualifications in the category

Insurance broker during 1997 / 8-2012

99,34%

0,66%

Dec iz ii poz itive

Dec iz ii neutre

Graph 3.2 - Structure by host countries of the decisions qualifications recognition registered

in the category Insurance broker in 1997 / 8-2012

98%

2%

Marea B ritanie

Aus tria

Positive decisions

Neutral decisions

United Kingdom

Austria

Page 21: Insurance agent insurance broker

Graph 3.3 - Structure by countries of origin of the requests for the qualifications recognition

registered in the category Insurance broker in 1997 / 8-2012

78%

0,66%

2%2%

0,33%

5%

8%

1%1%

Irlanda

Malta

G ermania

C ipru

F ranta

G rec ia

E lvetia

Italia

Danemarc a

L uxemburg

Marea B ritanie

Aus tria

Olanda

Source: all three charts are based on the data processed by the author from the EC database

with the regulated professions for the Insurance broker generic category, listed in Table 3.1

(on 30.04.2013)

In the top of professions in terms of the number of decisions on recognition of qualifications

acquired in another MS than that of the establishment / permanent practice, the professions

included in the generic category of "insurance broker" are placed as follows:

• the 88th place for the whole period (1997/8 - 2012), with 302 decisions;

• the 78th place for the period 2005 / 6-2012, with 258 decisions;

• the 93 place for the period 2010-2012, 62 decisions.

For comparison, we mention that the first position is occupied by the generic category "doctor

of medicine" (physicians) with 50 780 decisions adopted during 1997/8 – 2012, from which

49 155 decisions in the period 2005 / 6-2012 and for the period 2010 - 2012, on the first place

has passed the generic category "nurse" (nurses), with 22 301 decisions.

In the case of temporary provision of insurance services - Freedom of Services - FOS

(freedom to provide services), there are no declarations recorded in the IMI database. At EU

level, cross-border insurance services, however, are regulated, meaning the notification

obligation of the intent to provide them, known as the "notification procedure" (notification

procedure) or "European Passport" (European passport), notification which must made by the

provider to the CA of the host MS through the CA of the home MS.

For the establishment / permanent provision of insurance activity - Freedom of Establishment

- FOE (freedom of establishment), as shown in Table 1.1 of Chapter 1 of this guide, the three

systems of recognition set out in Directive 2005/36 / EC on the recognition of professional

qualifications, the professions registered by the EU MS within the Insurance broker general

category are covered by either the general system of qualifications recognition (Denmark,

France, Malta, UK, Hungary) either of the system of automatic recognition of qualifications

Ireland

Malta

Germany

Cyprus

France

Greece

Switzerland

Italy

Denmark

Luxembourg

United Kingdom

Austria

Nederland

Page 22: Insurance agent insurance broker

attested by professional experience in certain industrial, craft and commercial activities

(Austria, Czech Republic).

In Romania, the insurance professions are not included in the Law 200/2004 for transposition

of Directive 2005/36/EC on recognition of professional qualifications. Law 32/2000 on

insurance and reinsurance in Romania, as amended and supplemented, contains provisions

regarding the freedom of establishment of EEA insurers and intermediaries in Romania and of

the Romanian insurers in other EEA MS. The regulation of the insurance intermediary

professions occurred after the last amendments and supplements of the Law 32/2000. In the

Order of CSA. No.9/2012 are specified the conditions to access the practice of intermediation

activity - following the qualification programs authorized by CSA finalized with graduation

exam. In the EIOPA report it is mentioned that “In Romania, the insurance supervisor

recognises only training certificates issued by professional associations authorised in Romania

and graduation certificates obtained in Romania.” 15

.

In Austria, where the system of qualifications recognition, including those of the insurance

sector, acquired in other the EU MS, EEA and Swiss Confederation is based on Directive

2005/36/EC, BMWFJ (Federal Ministry of Economy, Family and Youth) is the CA

coordinating at national and international level and, also, the CA for declaring of cross-border

services (temporary or occasional) in commercial activities (regulated by the Law on trade,

crafts and industry - GewO), but the CA for the processes of qualifications recognition

certified by professional experience in certain industrial, craft and trade activities (including

also the insurance broker) for establishing / permanent performance are the regional

government (Landeshauptmann), which can record the intermediaries from other SM EEA or

Switzerland on the basis of evidence that they are registered in the register of insurance

intermediaries in the respective country (made by notification to the CA of home MS).

In the Czech Republic, the Law 38/2004 on insurance intermediaries and independent loss

assessors provides that, upon receipt of a notification from the CA from another MS

concerning an insurance intermediary intention of establishment in the Czech Republic, the

Ministry of Finance is required to inform the intermediary concerned about the general

conditions of the provision of intermediation services of insurance products in the Czech

Republic and to record him in the Czech register of insurance intermediaries within one

month from the date of receipt from CA in the home MS the identification data and

confirmation that it is recorded in the register of insurance intermediaries of the home MS.

In the case of the general system for the of qualifications recognition, the recognition is not

automatic, but it requires a comparison between the training provided in the two states - that

in which the applicant has acquired the qualification (home country) and in which it wants to

practice permanently (host country), and the possibility, in case of "substantial differences",

of the application of the compensatory measures (aptitude test or adaptation period - Article

23 of the Directive).

For the general system of recognition, the application for recognition is submitted to the CA

of the host MS. This application must be accompanied by a series of documents and

certificates listed in Annex VII to Directive 2005/36/EC.

The documents that can be requested when submitting an application for recognition are:

15

EIOPA - Report on a mapping exercise on Industry Training Standards applied by national competent authorities, 28

September 2012, p. 13

Page 23: Insurance agent insurance broker

• proof of nationality;

• evidence of establishment in another MS of the EU, EEA or Swiss Confederation;

• documents regarding professional qualification, competences and practical experience:

certificate of competence or evidence of formal qualification issued by the CA of the origin

MS;

• other documents, if they are required also to financial auditors from the host MS - evidence

of reputation, solvency, proof that the applicant is medically fit, financial status, professional

insurance.

The CA from the host MS may request copies and translations authenticated by a notary for

the most important documents, but not for standardized documents (e.g. passport, identity

card). Also, there can not be required original documents, only copies. In the case when the

applicant can not provide all the requested information, CA of the host country should try to

obtain them from the CA of the origin MS trough the IMI system.

As recognition procedure, the CA of the host MS shall, within one month, to confirm the

receipt of the file and to draw attention to any missing documents, if applicable. The CA

deadline to grant recognition or decide to apply an aptitude test is 4 months. Any rejection

must be substantiated and the rejection or failing to take a decision within the time limit

mentioned above could be challenged before the national courts.

The aptitude test can be applied provided that the CA of the host MS, based on the documents

received determines the differences between the two qualifications which must be covered by

compensatory measures. In setting the aptitude test subjects, the CA of the host MS should

consider not only the knowledge acquired by the applicant in the formal qualifications, but

also those that the person has acquired in informal and non-formal as well as practical

experience . In the vision of EC, the CA of the host MS should hold at least two sessions of

aptitude tests per year. In order to achieve the recognition and organize the aptitude test, the

CA may charge a fee provided that it does not exceed the costs involved and is not

discriminatory against its own nationals placed in similar situations. Once obtained the

qualification recognition, the applicant can practice the profession in the same conditions as

those acquired the qualification in the host MS, the professional regulations of the host MS

being applicable.

In Denmark, the request for qualification recognition together with the all documentation

must be submitted to Finanstilsynet (Danish Financial Supervisory Authority), but it appeals

to Styrelsen for Universiteter og Internationalisering (Danish Agency for Universities and

Internationalisation - the CA in Denmark for the transposition and implementation of

Directive 2005 / 36/CE on the qualification recognition) in order to carry out comparisons

between qualification acquired by the applicant in the home SM and the qualifications

required in Denmark, in order to decide whether it will be subject to an aptitude test / a

probationary period or not.

Although, of the 9 EU MS analyzed in this guide, only 4 have registered the insurance

intermediary regulated professions in the IMI system, pursuant to Directive 2005/36/EC on

recognition of professional qualifications (Austria and the Czech Republic adopting the

qualifications recognition system certified by professional experience in certain industrial

craft and commercial activities, and Denmark and the United Kingdom adopting the general

system of recognition of qualifications), we can consider that the other 5 MS automatically

accepted the adoption of general system for recognition giventhe fact that the CA countries

Page 24: Insurance agent insurance broker

are signatories to the Luxembourg Protocol on cooperation of the EU MS CA in the

implementation of Directive 2002/92/EC of the European Parliament and of the Council of 9

December 2002 on insurance mediation.

In paragraph 2.2.2. of the Protocol16 - Mutual Recognition – is stipulated that Even if there is

no specific mutual recognition clause in the Directive 2002/92/CE, the General system serves

as "lex specialis" under the following conditions and circumstances: natural persons fully

qualified as insurance intermediaries in a EU Member State wishing to take up the same

profession in another EU Member State on the basis of permanent establishment, without

keeping their original licence, should also be able to benefit from Title III, Chapter I of

Directive 2005/36/EC (which regulates the general system of qualification recognition)as the

situation is not covered by the Directive 2002/92/CE.

Annex II of the Protocol presents a model the notification of an insurance intermediary who

wishes to practice, based on freedom of establishment, in another MS than that in which it has

acquired the qualification and it was recorded. The information in this form, in the case of

phisical persons, are:

• name, surname;

• address or registration number;

• intermediary category, if applicable, and the name the insurer, if the intermediary operates

for and on its behalf;

• classes of brokered insurance products, if applicable;

• work carried out in the home MS;

• the current CA name;

• online register address where the intermediary is listed;

• the date, name and position of notification sender.

The AC of the host MS may require also additional data.

16

Protocol Relating to the Cooperation of the Competent Authorities of the Member States of the European Union in

Particular Concerning the Application of Directive 2002/92/EC of the European Parliament and of the Council of 9

December 2002 on Insurance Mediation, CEIOPS-DOC-02/06 Rev 1, Oct. 2008, p. 9 – at

https://eiopa.europa.eu/fileadmin/tx_dam/files/publications/protocols/Luxembourg_Protocol%20_without%20annexes_Rev1

_Oct2008.pdf

Page 25: Insurance agent insurance broker

Against a decision on the recognition of qualifications, considered not in line with Directive

2005/36/EC on the recognition of professional qualifications, one can act in a lecture stage

appealing to SOLVIT system which constitutes a possibility of complaint simpler than the

legal way.

The SOLVIT is an online network, operational since July 2002, in which the EU MS are

working together to solve in a pre-legal stage, problems caused by the misapplication or non-

application of Internal Market Community legislation by the public authorities.

There is a SOLVIT centre in every EU MS, as well as in Norway, Iceland and Liechtenstein.

The centers are part of the central government and must give solutions to the problems raised

by citizens or companies within 10 weeks, and the network utilization is free.

The Romanian SOLVIT Centre is located within the Ministry of European Affairs (can be

contacted at e-mail [email protected] ).

The SOLVIT mechanism operating conditions are:

• to be about the failure or misapplication of EU legislation by a Member State administration,

• to be about a cross border case

• that there is no action already in place for its settlement.

The cross border nature does not imply the petitioner to be in another MS than the one where

the problem has occurred. It is enough to have an international element that could make

applicable the provisions of Community legislation (e.g., a Romanian citizen wants to

practice in Germany and has difficulty on engagement). The functioning of the SOLVIT

system is shown in the diagram below.

Source: http://www.romania-actualitati.ro/conceptul_de_cetatenie_europeana-50325 (as of

07/17/2013)

How does it work

Country A Country A

Home

SOLVIT

centre

Lead

SOLVIT

centre

Work together to

find solutions

Work

together to

present

problem

and find

solutions

Work

together to

negotiate

problem

Problem

Natural or legal

person

Public

Authority

Page 26: Insurance agent insurance broker

For instance, if a Romanian citizen has a complaint regarding the rules of the internal market,

it will address SOLVIT ROMANIA (the organization that can handle the case depending on

the nationality of the person who submitted the complaint).

If a Romanian citizen has obtained the qualification in Austria, wishing to be employed in

Germany and has a complaint in this regard, it will address the centre in Austria. The

application will be analyzed and if deemed that the case is a breach of the Community law, it

will contact LEAD SOLVIT centre (responsible SOLVIT Centre). If they agree with the

proposal, it will go further to the respondent authority. The client is assisted in a language he

understands, but more important is that there is a SOLVIT centre responsible who knows

what procedures should be followed and which authorities should be contacted to resolve the

issue.

In order to obtain a good result, SOLVIT rely on the relationship with the respondent

authority. This is because it is an informal network and does not have the authority of a judge.

The reasons for which not all the petitions are addressed include:

• certain issues related to the Member State legislation, if it can not give a quick solution, the

case is considered unsolved;

• the respondent authority is not willing to cooperate, in which case the petitioner is advised to

consult the courts which are able to oblige the CA to modify their behavior accordingly to the

reported aspect.

For problems related to national legislation, SOLVIT centres are working together to see how

it can be amended.

4. EXERCISE IN THE EU OF THE INSURANCE AGENT AND INSURANCE BROKER

PROFESSIONS

According to BIPAR17 over 80,000 insurance mediation firms, with over 250,000 employees,

are operating in the EU internal market, therefore in all MS. Most of the intermediaries are

small businesses or even micro-businesses, place near the consumers, both in urban and rural

areas. They provide personalized services almost entirely to local private clients and to small

entreprises and are facing growing competition from the alternative distribution channels.

Many intermediaries are small and medium enterprises (SMEs) that serve other SMEs in all

sectors of activity at regional and national level and ever more in foreign markets following

their customers whenever they engaged in import - export activities, they are setting up

subsidiaries or branches or open their offices abroad. Some of the intermediates are large

companies that operate throughout Europe or even globally, having as client portfolio

especially the large firms (corporate customers). And some of them are active not only in

insurance but also in reinsurance. Therefore, overall, BIPAR consider that the insurance

market is still quite fragmented in the EU, and cross-border competition is limited by a

number of barriers to market access, such as lack of harmonization of the legislation SM

regarding the insurance contract and taxation, which leads to the reduction of purchasing

options for the consumers and obstructing operations of insurers. Insurance intermediaries

should assist consumers to overcome these barriers, but often this goal remains only an

aspiration.

17

BIPAR, The European Federation of Insurance Intermediaries – BIPAR response to the European Commission’s

Consultation document on the review of the Insurance Mediation Directive (IMD), February 2011

Page 27: Insurance agent insurance broker

In concordance with IMD118

, in all MS of the EU, Insurance and reinsurance intermediaries

have the obligation to hold professional indemnity insurance and to demonstrate its financial

capacity. The professional insurance must cover the whole territory of the Community and to

be at least EUR 1000000 for each claim request and in aggregate EUR 1500000 per year for

all claims (unless such insurance or comparable guarantee is already provided by an insurance

undertaking, reinsurance undertaking on whose behalf the intermediary is acting if such

undertaking has taken on full responsibility for the intermediary's actions.

The measures to protect customers against the inability of the insurance intermediary to

transfer the premium to the insurance undertaking or to transfer the amount of claim or return

premium to the insured shall take any one or more of the following forms:

provisions laid down by law or contract whereby monies paid by the customer to the

intermediary are treated as having been paid to the undertaking, whereas monies paid

by the undertaking to the intermediary are not treated as having been paid to the

customer until the customer actually receives them;

to have financial capacity amounting, on a permanent basis, to 4 % of the sum of

annual premiums received, subject to a minimum of EUR 15000;

a requirement that customers' monies shall be transferred via strictly segregated client

accounts and that these accounts shall not be used to reimburse other creditors in the

event of bankruptcy

a requirement that a guarantee fund be set up.

According to IMD1, The amounts referred to as minimum for the professional insurance and

financial capacity shall be reviewed regularly, every five years, in order to take account of

changes in the European Index of Consumer Prices as published by Eurostat

Moreover, Insurance and reinsurance intermediaries shall be of good repute, the minimum

condition being that they shall have a clean police record (or other equivalent proof in relation

to serious criminal offences linked to crimes against property or to financial activities and

they should not have previously been declared bankrupt ( unless they have been rehabilitated

in accordance with national law).

In proposal for revision of the Directive 2002/92/EC, that is the the IMD2 project, it is

provided the obligation of the insurance intermediaries to disclose any situation of conflict of

interest. They should advise the customers about their status (broker, tied agent, employee of

an insurance company) and the fee they receive. IMD2 provides for a transitional period of 5

years, for which the requirement applies only to life insurance intermediaries, the insurance

intermediaries in other classes are required to provide this information only during the

transition only on customer demand (motivation of the exemption is that to ease the transition

to the new regulations of the insurance mediation SMEs).

The IMD2 project also provides that independent brokers will be allowed to accept fee only

for contracts on insurance mediation with an investment component for the client.

18

Directiva Parlamentului European si a Consiliului 2002/92/CE din 9 decembrie 2002 privind intermedierea de asigurari, p.

8 – 10, la

http://www.csa-isc.ro/files/directive/2002_92.pdf

Page 28: Insurance agent insurance broker

CONCLUSIONS

The EIOPA report based on the survey conducted between March-September 2012 on

vocational training standards applied by the CA from EU MS and EEA19 is the latest

document and the most complete research which addressed the issue of this guide. Therefore,

we consider appropriate to render below the general conclusions presented in this report

EIOPA:

1. Knowledge and aptitudes/ability requirements:

are generally a combination of academic and professional experience, but, in some

instances (LU, NO, NL), academic qualifications can be waived if professional

experience is long enough.

In many Members States (BE, BG, CZ, CY, DK, FR, LU, LV, NO, PL, RO and SK),

the requirements for knowledge and ability are more stringent for insurance brokers

than insurance agents, except for some cases (DE, GR, IT, MT) where the

requirements for knowledge and ability are more stringent for agents and brokers than

for other categories of intermediaries.

Notwithstanding the requirement for continuous education in some jurisdictions (see

below), in a large number of cases (AT, BG, CY, FI, FR, DE, HU, IS, LV, LT, LU,

NO, MT, NL and SI), knowledge and ability are only assessed by national competent

authorities before the first registration of the intermediary.

2. Requirement to update knowledge and ability requirements

A large number of jurisdictions (AT, BG, CY, FR, DE, DK, HU, IS, LV, LU, MT and

SI) having no formal requirement, other MS (FI, LI, LT, PT, NO, SE, SK) having a

general obligation of continuous compliance with the knowledge and ability

requirements, others (IE, IT, UK) specify a minimum number of hours (e.g. 30 hours)

of CPD per year and others (BE, CZ, ES, PL, NL, RO, SK) provide the obligation

following certain CVT courses and/or passing of an exam on a certain periodicity /

over a specific number of years;

Apart from few exceptions (IE, IT, PT), there is limited availability for intermediaries

to carry out updating courses through e-learning.

3. The responsibility for assessing knowledge and aptitude/ability at national level varies

considerably between MS, from the assessment being carried out by national competent

authorities only or in tandem with undertakings/professional associations, or through

delegation to professional associations in some MS (BE, LV, NL) or to the

intermediary/undertaking itself. (In IT, for example, the responsibility for assessment differs

according to the category of intermediary)

4. The basic sanctions for failure to possess adequate knowledge and initial aptitude/ability

are (in all the MS analyzed) in refusal to register the intermediary or withdrawal of their

licence/authorisation in case the requirements are not meet permanently, but in some MS are

sanctions in place for suspensions/disqualifications (CZ, ES, IE, IS, LT, NL and SE),

administrative fines (NO, SE and SK) or fines/imprisonment (FR, IE, LI, PL,PT, NL).

5. As regard recognition of qualification aquired in other MS, there is very little experience

amongst national competent authorities to solve the request from those who have aquired the

qualification in one MS and wish to establish themselves in another MS, the proceses may be

carried out by the respective CA, either by national qualification bodies or by professional

associations.

19

EIOPA - Report on a mapping exercise on Industry Training Standards applied by national competent authorities, EIOPA-

BoS-12092, 28 September 2012, p. 5 - 6

Page 29: Insurance agent insurance broker

The last conclusion from the EIOPA report regarding the process of recognition of

qualifications for the insurance mediation business is confirmed by the analysis carried out in

this guide on regulated professions in the field registered in the IMI system and to the

statistics on recognition processes reported in the system: the fact that at the end of April 2013

only 7 MS had recorded 9 insurance mediation professions in the IMI system, "professional

qualifications" component and, among them, only 2 MS have recorded in the system the

receipt of applications for recognition of the qualifications acquired in other MS (the entire

period of functioning of the IMI system - 1997/8 - 2012) shows, indeed, a little experience in

applying the provisions of Directive 2005/36/EC on the recognition of professional

qualifications.

This situation may be due to the fact that IMD1 sectoral directive which regulate also the

professional requirements of the insurance intermediaries, on the one hand, does not contain a

specific provision on mutual recognition of professional qualifications, but on the other hand,

introduces the sole EU registration principle of the insurance intermediaries in order to

facilitate cross-border activities, both under the freedom to provide services (FOS) and under

the freedom of establishment (FOE). According to the principle sole registration, the decision

to register an intermediary, valid for the whole EU, is the sole responsibility of the CA of the

home MS, and the cross-border activities of an intermediary, including the freedom of

establishment (permanent provision, which, according to Directive 2005/36/EC requires the

recognition of professional qualifications acquired in the MS of origin) may be carried out by

following the procedure of intent notification of the intermediary, notification done by CA of

home MS to CA of host. MS

Therefore, the Luxembourg Protocol on cooperation of the EU MS CA in implementation of

Directive 2002/92/EC, initiated in 2006 in order to create a framework for cooperation and

exchange of information between the CA to ensure effective supervision of insurance and

reinsurance intermediaries and facilitate their unique registration in the EU, states that

recognition of qualification must to be made pursuant to Directive 2005/36/EC on a general

recognition system, in the case of an intermediary that wants to establish in another MS

without keeping its license / original authorisation.

Page 30: Insurance agent insurance broker

BIBLIOGRAPHY

Directive 2002/92/ec of the European Parliament and of the Council of 9 December 2002

on insurance mediation at

http://www.csa-isc.ro/files/directive/2002_92.pdf

CEIOPS, Committee of European Insurance and Occupational Pensions Supervisors –

Report on the Implementation of the Insurance Mediation Directive’s Key Provisions,

CEIOPS-DOC-09/07, March 2007 – at

https://eiopa.europa.eu/fileadmin/tx_dam/ files/publications/submissionstotheec/CEIOPS-

DOC-09-07IMDReport.pdf

CEIOPS, Committee of European Insurance and Occupational Pensions Supervisors – Protocol Relating to

the Cooperation of the Competent Authorities of the Member States of the European Union in Particular

Concerning the Application of Directive 2002/92/EC of the European Parliament and of the Council of 9

December 2002 on Insurance Mediation, EIOPS-DOC-02/06 Rev 1, Oct 2008 – at

https://eiopa.europa.eu/fileadmin/tx_dam/files/publications/protocols/Luxembourg_Protocol%20_without%2

0annexes_Rev1_Oct2008.pdf

EIOPA, European Insurance and Occupational Pensions Authority - Report on a mapping exercise on

Industry Training Standards applied by national competent authorities, EIOPA-BoS-12092, 28 September

2012 – at

https://eiopa.europa.eu/fileadmin/tx_dam/files/publications/reports/EIOPA-BoS-12-

092_Report_on_mapping_exercise_on_Industry_Training_Standards_applied_by_NCAs.pdf

EIOPA, European Insurance and Occupational Pensions Authority – Consultation Paper on a Draft Report on

Good Supervisory Practices regarding knowledge and ability requirements for distributors of insurance

products, EIOPA-CP-13/016, 27 June 2013 – at https://eiopa.europa.eu/consultations/consultation-

papers/index.html?no_cache=1&cid=5767&did=32596&sechash=1506a664.

European Commission - Proposal for a Directive of the European Parliament and of the Council on insurance

mediation (recast), Brussels, XXX, COM(2012) 360/2, 2012/0175 (COD) – forma bilingvă engleză-română

at http://eur-lex.europa.eu/Notice.do?mode=dbl&lng1=en,ro&lang=&lng2=bg,cs,da,de,el,en,es,et,fi,fr,it,lv,ro

,sk,sl,sv,&val=681131:cs&page=0

Dr. Alina Domaradzka, Lecturer, EIPA Luxembourg – The Revision of the Insurance Mediation Rules at EU

Level and its Impact on Consumer Protection – at

http://www.eipa.eu/files/repository/eipascope/20121213145141_ADO_Eipascope2012_2.pdf

The European Federation of Insurance Intermediaries (BIPAR) Response - European Commission’s

Consultation document on the Review of the Insurance Mediation Directive (IMD), February 2011

London Economics – Insurance Intermediaries in Europe – 2012 Update, report to BIPAR, September 2012 –

at http://www.bipar.eu/en/library/economic-data

Page 31: Insurance agent insurance broker

PwC – Study on the impact of the revision of the Insurance Mediation Directive (ETD/2007/IM/B2/51),

Final Report, prepared for the EC DG Internal Market and Services, May 23rd 2011 – at

http://ec.europa.eu/internal_market/insurance/docs/mediation/imd_final_en.pdf

Act no. 930 of 18 September 2008 - Consolidated Insurance Mediation Act, GlobalDenmark Translations,

February 2009, at

http://www.finanstilsynet.dk/upload/Finanstilsynet/Mediafiles/newdoc/Acts/CAct930_180908.pdf

Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)/ Federal Financial Supervisory Authority in

Germany - ’12 Annual Report, Bonn and Frankfurt am Main, May 2013, at http://www.bafin.de/

SharedDocs/Downloads/EN/Jahresbericht/dl_annualreport_2012.pdf?__blob=publicationFile

The Insurance Supervisory Commission (CSA) - Report on the insurance market and the activity carried out

in 2012, Bucharest, June 2013 - at http://www.csa-isc.ro/files/Raport%20anual%20CSA%202012.pdf

IMF Country Report no. 12/139 – Spain: IAIS Insurance Core Principles: Detailed Assessment of

Observance, June 2012, at http://www.imf.org/external/pubs/ft/scr/2012/cr12139.pdf

IMF Country Report no. 11/272 – Germany: Financial Sector Assessment Program - Detailed Assessment of

Observance on Insurance Core Principles, September 2011, at

http://www.imf.org/external/pubs/ft/scr/2011/cr11272.pdf

IMF Country Report no. 11/234 – UK: Insurance Core Principles Detailed Assessment of Observance, July

2011, at http://www.imf.org/external/pubs/ft/scr/2011/cr11234.pdf

IMF, Monetary and Financial Systems Department - Detailed Assessment of Observance of the Insurance

Core Principles, Italy, February 2006, at

http://www.dt.tesoro.it/export/sites/sitodt/modules/documenti_it/rapporti_finanziari_internazionali/rapporti_f

inanziari_internazionali/05Detailed-Assessment-of-Observance-.pdf

Capgemini and EFMA – World Insurance Report 2013, at

http://www.capgemini.com/sites/default/files/resource/pdf/wir_2013_0.pdf

European Commission, Internal Market and Services DG (2010) – Group of Coordinators for the

Recognition of Professional Qualifications – Frequently Asked Questions (Update 22 October 2010 –

MARKT D/3418/6/2006-EN) at

http://ec.europa.eu/internal_market/qualifications/docs/future/faq_en.pdf

European Commission – User Guide, Directive 2005/36/EC, at

http://ec.europa.eu/internal_market/qualifications/docs/guide/users_guide_en.pdf

European Commission – Code of Conduct approved by the Group of Coordinators for the Directive

2005/36/EC on the Recognition of Professional Qualifications – National Administrative Practices Falling

under Directive 2005/36/EC – at http://ec.europa.eu/internal_market/qualifications/docs/future/cocon_en.pdf

European Commission – Commission Staff Working Document on the Transposition and Implementation of

the Professional Qualifications Directive (Directive 2005/36/EC), Brussels, 22 /10/2010, SEC(2010) 1292, at

http://ec.europa.eu/internal_market/qualifications/docs/evaluation/staff-working-doc_en.pdf

Page 32: Insurance agent insurance broker

ABBREVIATIONS

AC/CA – Competent Authority (for one or more regulated professions)

AFM - Dutch Authority for Financial Markets

ANC/NAQ – National Authority for Qualifications (from Romania)

ASF/FSA – Financial Supervisory Authority (by merging - CNVM, CSA and CSSPP - Romania)

ASSESS - online system through which CII (UK) provides FPC

BaFin - Bundesanstalt für Finanzdienstleistungsaufsicht (Federal Financial Supervisory Authority in Germany)

BIPAR - The European Federation of Insurance Intermediaries (Federaţia Europeană a Intermediarilor de

Asigurări)

BMWFJ - Bundesministerium für Wirtschaft, Familie und Jugend (Federal Ministry of Economy, Family and

Youth of Austria)

BMWI - Bundesministerium für Wirtschaft und Technologie (Ministerul Federal al Economiei şi Tehnologiei

din Germania)

CDFD – College Deskundigheid Financiële Dienstverlening (Financial Services Competences College

/ Council )

CE/EC – European Commission

CEC/EQF – Cadrul European al Calificărilor/European Qualifications Framework

CEIOPS - Committee of European Insurance and Occupational Pensions Supervisors (Comitetul European al

Supraveghetorilor din Asigurări şi Pensii Ocupaţionale, substituted by EIOPA from 1.01.2011)

CII – Institutul Certificat de Asigurari (Chartered Insurance Institute from the United Kingdom)

CNVM – National Securities Commission (from Romania, incorporated in the current ASF)

COR - Classification of Occupations in Romania

CSA – The Insurance Supervisory Commission (from Romania, incorporated in the current ASF)

CSF - Financial Stability Council (at international level)

CSSPP – Supervisory Commission of Private Pension System (from Romania, incorporated in the current ASF)

DFSA - Danish Financial Supervisory Authority (Finanstilsynet/ Autoritatea Daneză de Supraveghere

Financiară)

DG/GD – General Directorate

DGSFP - Dirección General de Seguros y Fondos de Pensiones (General Directorate of Insurance and

Pension Funds, the Supervisory Authority in Spain)

DIHK - Deutsche Industrie-und Handelskammertag (The Association of German Chambers of Industry and

Commerce)

DNB - De Nederlandsche Bank (Central Bank of the Netherlands)

EFMA – European Financial Management Association (Asociaţia Europeană de Management Financiar)

EFP/ VET - Vocational Education and Training

EIOPA – Autoritatea Europeană de Asigurări şi Pensii Ocupaţionale – AEAPO (The European Insurance and

Occupational Pensions Authority, which substituted CEIOPS from 1.01.2011)

Page 33: Insurance agent insurance broker

EIPA – European Institute of Public Administration (Institutul European de Administraţie Publică)

FCA - Financial Conduct Authority (Autoritatea de Conduită Financiară din Marea Britanie)

FMA - Finanzmarktaufsichtsbehörde (Austrian Financial Market Authority)

FMI – Fondul Monetar Internaţional (International Monetary Fund – IMF)

FOE - Freedom of Establishment (libertatea de stabilire, în UE)

FOS - Freedom of services (libertatea de a presta servicii, în UE)

FPC CVT - continuing vocational training

FSA - Legea Supravegherii Financiare (Financial Supervision Act of the Netherlands)

G20 – World Forum, a group of finance ministers and central bank governors of 19 countries (South Africa,

Saudi Arabia, Argentina, Australia, Brazil, Canada, China, South Korea, France, Germany, India,

Indonesia, Italy, Japan, United Britain, Mexico, Russia, USA, Turkey) and EU, countries amounting 90%

of global GDP, 80% of world trade (including EU) and two-thirds of the world population

GewO – The law on trade, crafts and industry (in Austria and Germany)

IAIS – International Association of Insurance Supervisors (Asociaţia Internaţională a Supraveghetorilor în

Asigurări)

IHKs - Industrie- und Handelskammern (chambers of industry and commerce in Germany)

IIS – International Insurance Society (Societatea Internaţională a Asigurărilor)

IMA – Insurance Management Institute (from Romania)

IMD1 - Directive 2002/92/EC of the European Parliament and of the Council on insurance mediation

IMD2 - Directive 2002/92/CE, revised

IMI – Internal Market Information system (information system of the EU single market)

IMM/SMEs – small and medium enterprises

IPS - Institute for Social Policy (in Romania)

ISCO-08 - International Standard Classification of Occupations, developed by the ILO in 2008

ISVAP – Instituto per la Vigilanza sulle Assigurazioni Private e di Interesse Collettivo (former insurance

supervisory authority in Italy)

IVASS - Instituto per la Vigilanza sulle Assigurazioni ( the current insurance supervisory authority in Italy)

JO – Official Journal of UE

LCS - Ley de Contrato de Seguro (Insurance contract law in Spain)

LMSP - Ley de Mediación de los Seguros Privados (Law on private insurance mediation in Spain)

MEC - Ministry of Economy and Competitiveness in Spain

MEN – Ministry of National Education (from Romania)

MO – Official Journal (in Romania)

OCDE – Organizaţia pentru Cooperare şi Dezvoltare Economică (Organisation for Economic Cooperation and

Development – OECD)

Ofqual - Oficiul de Reglementare a Calificărilor şi Examinărilor (Office of Qualifications and Examinations

Regulation, in the United Kingdom)

Page 34: Insurance agent insurance broker

OIM - Organizaţia Internaţională a Muncii (International Labour Organisation – ILO)

PRA - Autoritatea de Supraveghere Prudenţială (Prudential Regulation Authority from Marea Britanie)

ROSSP - Reglamento de Ordenación y Supervisión de los Seguros Privados (The Code of organisation and

supervision of private insurances in Spain)

SEE/EEA – European Economic Area (all EU MS + Iceland, Liechtenstein, Norway)

SM/MS – Member State (of the European Union)

TRLOSSP - Texto Refundido Ley de Odenación y Supervisión de los Seguros Privados (Law on the

organization and supervision of private insurance organizations in Spain)

UE/EU – European Union

VAG - Versicherungsaufsichtsgesetz (The law on the supervision of insurance in Austria and Germany)

VersVermV - Versicherungsvermittlerverordnung (Law on Insurance Mediation in Germany)

USEFUL LINKS

EU MS insurance authorities–

http://ec.europa.eu/internal_market/insurance/links/index_en.htm#maincontentSec2

CE database with information regarding the transposition into national law of MS of the Directives on

Financial Services Action Plan -

http://ec.europa.eu/internal_market/finances/actionplan/transposition/index_en.htm

EIOPA - https://eiopa.europa.eu/

IAIS - http://www.iaisweb.org/

IIS – http://iisonline.org/about-iis/

BIPAR - http://www.bipar.eu/

EC database of the regulated professions in the MS –

http://ec.europa.eu/internal_market/qualifications/regprof/index.cfm?newlang=en

National Contact Points for qualifications recognition from MS

http://ec.europa.eu/internal_market/qualifications/contact/national_contact_points_en.htm

MS SOLVIT Centers http://ec.europa.eu/solvit