New rules for anyone selling insurance in Spain

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1. The bill would regulate the entire insurance distribution chain, not just intermediation: also insurers selling their own products directly and those selling insurance on an ancillary basis, such as travel agencies or car rental companies.
2. Anyone wanting to act as an insurance intermediary or reinsurance broker would have to register first with an administrative register kept by the Directorate General for Insurance and Pension Funds. Insurers would not register there, but some of their responsible persons would.
3. The bill distinguishes two classes of intermediaries: insurance agents, who work for one or more insurers under an agency contract, and insurance brokers, who are independent and must provide objective, personalized advice.
4. Banks and credit institutions selling insurance through their networks would act as bancassurance operators, with their own registration, training and advertising requirements.
5. Before signing an insurance contract, the distributor would have to explain its identity, whether it gives advice, how it is paid and which insurers it represents. For non-life insurance, a pre-contract information document would set out cover, exclusions and costs.
6. For insurance-based investment products, a stricter regime would apply: avoiding conflicts of interest, disclosing all costs, and checking whether the product fits the customer's profile and risk tolerance.
7. The bill strengthens the penalty regime, with fines that can reach 5 percent of annual turnover for insurance-based investment products, and provides for publishing final penalties for serious and very serious breaches in the Official State Gazette.
8. Customers would have the right to have their complaints heard and resolved, and insurers and brokers could appoint an independent customer ombudsman whose decisions in the customer's favor would bind them.

Who it affects

• People who buy or plan to buy insurance: They would receive more information before signing, including costs and how the distributor is paid, and would have channels to complain.
• Insurance intermediaries, agents and brokers: They would have to register with the administrative register, pass training courses and meet new information and conduct obligations.
• Insurance and reinsurance companies: They would be included as distributors and would take on internal registration, training and oversight duties for their employees and agents.
• Banks and credit institutions selling insurance: They would act as bancassurance operators with specific registration and network training requirements.
• Companies selling insurance as a side activity, such as travel agencies: They could become ancillary insurance intermediaries, though some would be exempt if they meet certain premium limits.

Words worth knowing

Mediador de seguros (insurance intermediary)

A person or company that, for payment, advises on, proposes or helps arrange insurance, without being an insurer or its employee.

Corredor de seguros (insurance broker)

An independent intermediary who offers objective, personalized advice by comparing products from several insurers.

Operador de banca-seguros (bancassurance operator)

A bank or credit institution that sells insurance through its own branch network.

Producto de inversión basado en seguros (insurance-based investment product)

An insurance product whose final value depends, wholly or partly, on how financial markets perform.

Libre prestación de servicios (freedom to provide services)

A regime allowing an intermediary from another European Union country to operate in Spain without establishing itself there.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries