In order to distribute their insurance products, insurance companies frequently engage the services of insurance intermediaries (brokers, insurance agents, insurance brokers).
These insurance intermediaries may in turn to engage third parties so that they assist them in their missions: these insurance intermediaries (MIA).
The insurance broker status, although regulated, is a relatively flexible status allowing brokers to to quickly outsource the sale of insurance products which they have been entrusted with the distribution of.
The status of insurance intermediary has experienced strong growth in recent years. Indeed, while there were approximately 16,000 insurance intermediaries in France in 2012, there were approximately 30,000, representing an increase in the number of insurance intermediaries of 100% in less than ten years. Since 2023, despite a slight decrease, the number of insurance intermediaries appears to be stabilizing.
If the use of the insurance broker status has therefore progressed rapidly, it is nevertheless prudent to be cautious before signing an insurance broker agreement.
AUMANS AVOCATS (Formerly FOUSSAT AVOCATS) advises you, assists you and accompanies you for all your questions relating to the insurance broker or MIA.
Do you have any questions? Contact us !
The status of the insurance intermediary
The insurance broker or MIA plays an essential role in the insurance sector. Unlike brokers or agents who work directly for insurers or clients, MIAs instead act on behalf of other insurance intermediaries, such as brokers or agents.
The MIA is responsible for promoting the insurance products of the intermediaries it represents, advising potential clients of those intermediaries, and facilitating the conclusion of insurance contracts. Although independent, it carries out its activity under the “supervision” of an insurance intermediary.
As an example, a MIA can thus be mandated by an insurance broker to present health insurance contracts in a specific region, while ensuring the loyalty of the broker’s existing customer base and securing new subscriptions.
He is bound to his principal by a mandate contract. Unless there is an exclusivity clause, he may work with several principals.
He is responsible for retaining the client base of his principal and for concluding he executes sales in insurance on behalf of and for the latter’s account.
The MIA’s activity consists of presenting, proposing or assisting in the conclusion of insurance or reinsurance contracts. It can also carry out preparatory work to contribute to the conclusion of these insurance contracts.
He typically receives a commission on sales he makes, calculated on his client’s commission.
A flexible but regulated framework
Although insurance intermediaries benefit from a certain contractual freedom when appointing an MIA, the status of the latter is nevertheless framed by a number of legal obligations: mandatory registration of the MIA with ORIAS, compliance with honorability and competence requirements by the MIA, etc. This framework ensures, among other things, the competence and reliability of the MIAD, enabling them to offer expertise in accordance with the expectations of the intermediaries who appoint them and of the clients.
Do not confuse the MIA with other intermediaries in insurance
If the MIA is also an insurance intermediary, it must not be confused with the three other categories of insurance intermediaries defined in Article R.511-2 of the Code of Insurance, to wit:
- the insurance broker or reinsurance: he advises and assists his clients in the selection of their insurance products. He seeks to find the insurance contract most suitable for his clients’ needs. He therefore acts on behalf of his clients and not insurance companies. He is not bound to a specific insurance company. He has the status of merchant.
- the general agent of insurance: he represents one or more insurance companies (if they are not competitors) for whom he is responsible for to place contracts with clients.
- the insurance agent: He performs the same function as the general insurance agent. However, unlike him, he is not authorized to manage client contracts.
As previously indicated, the insurance broker acts not directly in the interest of an insurance company or rather in that of one of the the three categories of insurance intermediaries mentioned previously.
What are the conditions to meet to exercise as a MIA ?
To exercise as a MIA, several conditions must be met:
- To meet the professional capacity requirements necessary for the exercise of the MIA profession,
- Registering with the ORIAS single register (Registration is renewable annually)
- to subscribe to professional liability insurance contract.
- to comply with the condition of the honorability of the profession of MIA (request and control carried out by ORIAS).
- to be covered by a financial guarantee (only when the MIA receives funds intended to be paid to either an insurance company or insured parties).
Agency Agreement for Insurance Intermediary or MIA: What are the main elements ?
The drafting of agency agreement The drafting of this agency agreement must be carried out with care. Indeed, disputes are not uncommon and can quickly become sources of complications for insurance intermediaries. Under these circumstances, it is therefore preferable to carefully draft each of the various clauses of this agency agreement.
Thus:
- Define clearly each of the missions delegated to the MIA;
- Also consider list each insurance product that your intermediary will be responsible for distributing.
- ensure that the the start date of the MIA assignment is subsequent to its registration with the ORIAS.
- Finally, be particularly vigilant regarding the fact of to preserve the independence of the MIA. This must maintain its autonomy when exercising activities. The risk being for the client a reclassification as a contractual worker. The financial consequences could be significant in such a scenario.
AUMANS AVOCATS (Formerly FOUSSAT AVOCATS) is at your disposal to assist you during the drafting of your MIA contracts, as well as in the event of disputes relating to these contracts.
With nearly thirty years of specialization in commercial agent law, and a thorough mastery of the issues related to the status of commercial agents, Jean-Charles FOUSSAT and his team advise and assist their clients throughout the lifecycle of their commercial agent contracts — including international ones — whether it involves their conclusion, qualification, execution, termination, or even their assignment.
Jean-Charles FOUSSAT and his team remain at your disposal for any further information you may need.
