Germany's Federal Financial Supervisory Authority consults on clearer insurer identification in white label insurance

Germany's Federal Financial Supervisory Authority (BaFin) has launched a consultation on draft guidance clarifying how insurers must identify themselves when their products are marketed under a partner's brand. Customers must be able to distinguish the insurer providing cover from the distributor, and insurers remain responsible for compliance when using distribution partners. The draft covers direct insurers other than death benefit funds and pension funds, including distribution through digital channels. The insurer's identity must be clear in good time before customers make their contractual commitment and appear unambiguously in precontractual disclosures, policy terms, applications and insurance policies. Good practice includes prominently identifying the insurer at the start of relevant information and explicitly naming it as the contractual counterparty, rather than burying disclosures in footnotes or small print. Unfamiliar labels such as “risk carrier” should be explained, and terminology should be consistent across documents and distribution channels. Marketing must not imply that the partner itself provides the insurance, while ambiguous descriptions such as “cooperation partner” are insufficient to identify the insurer. Insurers must maintain internal processes and controls to ensure compliance, including appropriate selection, management and monitoring of distribution partners. Product approval processes must ensure that the distribution strategy matches the target market and that distributors receive the information needed to act in customers' best interests. BaFin would check implementation through further supervision, with breaches potentially leading to supervisory action.