IMEB 1.2.2 What is insurance mediation?

(1) Insurance mediation is any of the following activities:
(a) giving advice to other persons about the merits of entering into contracts of insurance, whether as principal or agent;
(b) acting as agent for other persons in relation to the buying or selling of contracts of insurance for them;
(c) making arrangements with a view to other persons buying contracts of insurance, whether as principal or agent;
(d) assisting in the administration or performance of contracts of insurance for or on behalf of policyholders.

Note Person and contract of insurance are defined in the glossary.
(2) Subrule (1) (a) includes making a statement, expressing an opinion, or giving a report, to another person if—
(a) the conduct is intended to influence a person in making a decision to select a particular contract of insurance or particular cover under a contract of insurance; or
(b) the conduct could reasonably be regarded as having that intention.
(3) Subrule (1) (c) includes arrangements mentioned in the provision that do not result in another person buying a contract of insurance.
(4) Subrule (1) (d) includes—
(a) assisting policyholders to make claims under contracts of insurance; and
(b) managing claims made by policyholders under contracts of insurance.
(5) However, insurance mediation does not include any of the following activities:
(a) an activity in relation to which all of the following requirements are met:
(i) it is conducted in the course of a professional business;
(ii) it may reasonably be regarded as a necessary part of any other services provided in the course of that professional business;
(iii) it is not remunerated separately from the other services;
(b) loss adjusting;
(c) expert appraisal of insurance claims;
(d) the giving of advice in any newspaper, journal, magazine, other periodical publication, broadcast service or similar service in any medium if the main purpose of the publication or service taken as a whole (including any advertisements or other promotional material contained in it) is not to cause or enable persons to buy, or to make a decision to select, a particular contract of insurance or particular cover under a contract of insurance;
(e) the activity involves merely providing the means by which a party to a transaction can communicate to the other parties to the transaction;
(f) the act of the other persons mentioned in subrule (1) (b) or (c) in entering, as principal, into a transaction in respect of a contract of insurance;
(g) captive insurance management.

Note Captive insurance management is defined in rule 1.2.5.
Derived from QFCRA RM/2011-3 (as from 1st July 2011)