Danish Financial Supervisory Authority reinforces requirement that insurers use only authorised insurance intermediaries

The Danish Financial Supervisory Authority has reiterated and tightened its expectations that insurance companies may only use insurance intermediaries that hold a valid authorisation from the authority. The reminder follows a review of an insurer where products were sold through independent intermediaries, including intermediaries without valid permission to carry out insurance mediation. In the case reviewed, two of twelve independent intermediaries did not have a valid authorisation. Insurers using independent intermediaries are expected to have adequate procedures and controls to verify authorisation when the relationship is established and on an ongoing basis, using the authorisations shown in the authority’s public business register. The authority also highlighted that the Insurance Mediation Act requires all firms carrying out insurance mediation to be authorised and listed in its register, and that it can issue orders to insurers that do not comply.