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Meet the Law - Insurance and reinsurance distribution

On January 26, 2021 the Regulatory Standard of the Insurance and Pension Funds Supervision Authority No. 13/2020-R was published (“Regulatory Standard”), which regulates the legal regime of insurance and reinsurance distribution (“Legal Regime”), approved by Law No. 7/2019 of January 16 (“Law”). The Regulatory Standard comes into force thirty days after its publication.

The Regulatory Standard aims to concentrate in a legal instrument all the regulations applicable to the activity of insurance and reinsurance distribution, with the exception of the regime applicable to the adequate qualification, training and continuous professional improvement that is established in Regulatory Standard 2/2020-R, of April 8. The Regulatory Standard also responds to the need to establish a regime applicable to the new category of insurance distributors, the ancillary insurance intermediaries (a figure which was introduced by the Legal Regime).

The Regulatory Standard further specifies the conditions of access to the activity of insurance and reinsurance distribution, contained in the Legal Regime, which imposes increased requirements regarding the suitability of candidates for insurance, reinsurance and ancillary insurance intermediaries further setting out that, once developing its activity, the same must, in order to maintain the registration, continue to fulfil all the relevant conditions for the respective access.

The minimum conditions for professional indemnity insurance to be concluded by insurance, reinsurance and ancillary insurance intermediaries was also regulated.

Regarding the duty of adopting a policy of conception, approval and distribution of insurance products, the Regulatory Standard expressly refers to the regime established in the Delegated Regulation (EU) No. 2017/2358 of the Commission of September 21, 2017, which is directly applicable, thus aiming at a clear definition of the legal regime.

It is also defined the general principles and minimum content of the policy for the treatment of policyholders, insured persons, beneficiaries or damaged third parties. In this sense, the duty of insurance and ancillary insurance intermediaries to have adequate procedures for claim management is defined.

The principles applicable to the financial reporting of insurance, reinsurance and ancillary insurance intermediaries are also established, namely with regard to the respective accounting regime, additional disclosure requirements and reporting to the Insurance and Pension Funds Supervisory Authority (ASF).

Finally, with regard to the control of qualifying holdings, the elements and information that must be communicated to the ASF are established, thus densifying what had been established in the Legal Regime, with regard to changes relating to qualifying holdings held in insurance brokers or reinsurance intermediaries.


Margarida Vila Franca
Margarida Vila Franca
Pedro Fernandes Nunes
Francisco Verdelho