1. Who can participate in the insurance market?
Entities on the insurance market in Croatia are represented by contractors and insured persons, insurance distributors, the Croatian insurance office and the Croatian financial services supervisory agency (HANFA) – the National Supervisory Authority, EIOPA – the European insurance and occupational pension insurance supervisory authority.
The establishment and operation of an insurance brokerage company in the Republic of Croatia is regulated by the Insurance Act ( OG 30/15, 112/18).
2. What is insurance distribution and what is reinsurance distribution?
According to Article 399. The Insurance Act – Insurance distribution is the activity of proposing and concluding insurance contracts, consulting insurance contracts or performing other preparatory actions for the conclusion of insurance contracts, or concluding such contracts, or assisting in the management and execution of such contracts, in particular in the case of settlement of a claim, including providing information on one or more insurance contracts in accordance with criteria selected by the parties through a website or other media and compiling a ranking list of insurance products, including comparison of prices and products or a discount on the price of the insurance contract, where the party can directly or indirectly conclude the insurance contract on a website or other medium.
Reinsurance distribution is the activity of advising, proposing or carrying out other tasks in the preparation of the conclusion of reinsurance contracts, the conclusion of those contracts or assisting in the management and implementation of those contracts, in particular in the case of claims, including when carried out by a reinsurance undertaking without the intervention of a reinsurance intermediary.
3. Who is an insurance broker and who is a reinsurance broker?
An insurance intermediary is a natural or legal person, other than an insurance or reinsurance undertaking and their employees and other than a secondary insurance intermediary, who has the right to perform or perform insurance distribution activities for receipt. The categories of insurance intermediaries are: insurance agent, insurance agent craftsman, insurance representation Company, Insurance broker, Insurance Broker, Insurance Brokerage, insurance brokerage company and other persons according to art.402. The insurance law.
A reinsurance intermediary is a natural or legal person, other than a reinsurance undertaking or its employees, entitled to perform or perform reinsurance distribution activities for receipt.
4. Insurance and/or reinsurance brokerage company
Insurance and/or reinsurance brokerage company is a legal entity with its Registered office in the Republic of Croatia that performs the activities of insurance distribution and/or reinsurance distribution by order of the party and is registered in the Register of the agency (HANFA) on the basis of the agency's license (HANFA) to perform the activities of insurance distribution or on the basis of the agency's license (HANFA) to perform the activities of reinsurance distribution.
5. What are the activities of brokers in insurance?
Insurance brokers connect insured persons with insurance companies in order to conclude insurance contracts, whereby they are obliged to protect the interests of their principal as prescribed in articles 403. and 424. Insurance Act (NN30/15, 112/18). The material legal content of the term broker is found in the activities performed by the broker. A Broker is a person who stands between the seller and the buyer for the purpose of facilitating the sale of goods or services, and for the purpose of obtaining a fee, i.e. Commission, which is proportional to the price of the goods/services purchased or sold. An insurance Broker is a person distinct from an insurer and an insurance agent. It mediates the distribution of insurance products by representing primarily the interests of the insurance contractor (or insured).
A Broker is a professional who does business at the behest of a client. He is an expert in the insurance market, risk assessment and insurance contract technique. By assessing the level of risk to which an individual client is exposed, he suggests the techniques of possible prevention as well as the manner and scope of contracting the optimal insurance coverage for the best possible price. By concluding an insurance contract, the broker's work does not cease, but is at the disposal of the insurance contractor and the insured in connection with the exercise of their rights from concluded insurance contracts in which he mediated the conclusion.
For more detailed information on the services of insurance brokers, see our services.
6. How do I know if I need an insurance broker?
If you want the help of a professional who will assess your risk exposure (in business or daily activities) and/or you are not satisfied with the existing insurance conditions and/or are limited by time or other resources (Know-how, human capacities, financial resources) it is certainly advisable to contact an insurance broker to advise and guide you through the process of risk analysis, contracting optimal coverage and executing the concluded insurance contract.
Brokers are the ones who will analyze the risks to which their clients, insured, are exposed in business, and advise them on how, using specific insurance models, to cover these risks, or transfer them to the insurance company.
7. What is the difference between an insurance broker and an insurance agent?
According to art.402. The insurance broker performs insurance distribution activities on behalf of and for the account of one or more insurance companies (or insurance companies of another member state) on the order of the party, while the insurance agent performs insurance distribution activities on behalf of and for the account of one or more insurance companies (or insurance companies of another member state). The Broker in the insurance market is looking for an optimal insurance solution tailored to the needs of the client.
8. Are the procurement of insurance broker services subject to the provisions of the Public Procurement Act?
In situations where the services of the broker are not paid for by the client (the contracting authority), the same does not carry out the public procurement procedure for the engagement of insurance intermediaries, because the services of the broker for the contracting authority are unpaid.
9. What does it mean that the insurance broker's services for the client are unpaid?
Article 435 Insurance policy in Section 6. the insurance and/or reinsurance brokerage company, insurance and/or reinsurance broker or insurance and/or reinsurance broker is entitled to compensation for insurance distribution or reinsurance distribution or any other remuneration from the insurance company or from the reinsurance company whose insurance or reinsurance product it has distributed. They may exercise the right to compensation or any other remuneration from the insurance or reinsurance contractor on whose order he performed the tasks in connection with the conclusion of the insurance or reinsurance contract if this is specified in the order for the performance of those tasks. If he is entitled to compensation or any other remuneration from the insurance contractor, then he is not entitled to a commission or any other remuneration from the insurance company for the insurance contract in which he performed the business of distributing the insurance.
10. What is risk exposure assessment?
Risk exposure assessment means an analysis of the subject-matter of insurance and the impact of potential risks on it taking into account the adverse result in the previous period and other factors on the basis of which the likelihood of future risk being realised would be assessed, and the consequences of which can be protected by insurance contracting.
Depending on whether it is insurance of assets, financial interests or persons, various factors are taken into account for risk assessment: characteristics, damage history, territorial cover, exposure to harmful external influences, activities/activities carried out, existing protection measures, etc.
11. What does risk management include?
It includes analysis of the current situation-structure and characteristics of insurance facilities, assessment of risk exposure, analysis of the entire business and individual business processes, wishes and needs of clients, taking into account existing protection measures and experience with damages – both charged and eliminated, and proposals for contracting insurance in the future. During the term of the insurance contract, the broker continuously monitors the activities of clients by adjusting the system of insurance protection of clients in changing business conditions. In situations where the insurance market does not offer an appropriate solution to the needs of the client, the broker initiates the development of new insurance programs in cooperation with insurance companies that have the knowledge and interest to respond to the needs of the market.
12. Are there any special conditions for hiring an insurance broker?
There are no prerequisites for the engagement of insurance brokers. Although brokers generally work with legal entities, there are no obstacles to mediating when arranging insurance for natural persons.
13. Does it make sense to hire an insurance broker if the client has a valid multi-year insurance contract?
Even in the situation of the existence of a multi-year insurance contract, the client may hire an insurance broker. The possibilities for changes under these contracts depend on the quality of the existing contractual coverage, the compliance of the insurance policy with the needs of the client, as well as the time within the multi-year contract in which the broker is involved and other specific circumstances. Each such case needs to be studied separately and determine which options are available to the client – his rights and obligations.