How to Get Authorised
All Insurance and tied insurance brokers/intermediaries must be registered with the Central Bank. It is an offence to carry on such an activity without being authorised.
The majority of all new authorisations are under IMD (Insurance Mediation Directive 2005). An Insurance Mediation is “any activity involved in proposing or undertaking preparatory work for entering into insurance contracts or of assisting in the administration and performance of insurance contracts that have been entered into (including dealing with claims under insurance contracts)”
It is compulsory to be authorised and authorisation is given on a case by case basis, subject to background checks, MCC compliance and previous experience. You must submit an authorisation form under IMD. To avail of this form log onto www.centralbank.ie and go to financial regulation (tab at top of page)> see retail intermediaries>download form called Registration as an Insurance/reinsurance Intermediary.
Requirements for Authorisation
- Possessing appropriate knowledge and ability (evidence of compliance with MCC)
- Holding PI cover
- Maintenance of Client Premium account
Associated costs involved in being an Insurance Broker
- Annual levy to Financial Services Ombudsman.
- Annual Levy to ICCL (Investor Compensation Company Ltd).
- Annual Central Bank Levy.
- Annual fee to National Consumer Agency IF YOU register as a credit intermediary i.e. you provide premium financing for personal lines clients and get remunerated for this.
- Annual accountant costs to produce annual accounts.
- Annual PI cover.
- Annual Insurance cover.
- Employers Liability, Business Interruption, Office policy.
- Software System costs e.g. relay/Open GI/Spike.
- IT maintenance costs, website, email hosting, PC’s.
- Compliance costs- education, training, CPD, Professional Membership fees.
- Rent (If needed), light, heat, postage, banking fees, general business expenses.
Once authorised, firm and staff must comply with: (not exhaustive list)
- Consumer Protection Code
- Minimum Competency Code
- Fitness & Probity Standards
- Data protection legislation
- Employment Law
- Equal Status Act
- Anti Money Laundering (Where applicable)
- Distance Marketing Directive (Where applicable)
- S.I. no 74 non life Renewal Regulations