Core standard for insurance brokers’ operations in the financial market approved

The core standard is the result of joint efforts by the Bank of Russia and the Association of Professional Insurance Brokers, a self-regulatory organisation in the financial market consolidating insurance brokers, which drafted the document in line with the regulator’s requirements. The core standard is binding for all insurance brokers.

The core standard takes into account the specifics of the work undertaken by insurance brokers, which may operate on behalf of both insurers and clients (consumers of insurance services).

The document sets forth requirements for brokerage operations associated with the conclusion, amendment and cancellation of insurance contracts, and loss settlement in favour of clients (both insurant and insurer), as well as the conditions and procedure for accepting money due from insurants for the payment of insurance premiums.

Additionally, the standard regulates consulting services provided by brokers. It was specifically established that in the course of providing these services to insurants, the broker must explain the insurance rules, draft insurance contracts, as well as special terms, and, at the client’s request, give examples of insurance with similar risks and analogous conditions and litigation.

The core standard will come into force 180 days after its publication on the Bank of Russia website.