The insurance regulator is considering the modification of the Insurance Registry Regulations, including some provisions that have caused unease amongst registered insurance brokers.
The main modifications suggested are:
(i) to forbid individual insurance brokers the use of sales strategies, as well as regulating insurance intermediation through agency contracts with insurers, the use of salesmen or the setting up of points of sale;
(ii) setting up rules for the opening and closing of offices and branches, as well as the use of offices shared with other supervised entities;
(iii) to forbid any remuneration, allowance, profit-sharing, or any other financial benefit (received directly or through a third party) paid by insurers, insureds or third parties. Exceptions are the brokers' commissions, experts' consultancy fees and loss adjusters' professional fees.
This last modification is the most controversial, since it seems to indicate that brokers could only receive commissions for intermediation, limiting their capacity to receive professional fees for consultancy services, which is a usual market practice.