Regulatory Alerts2022-06-02
Official Position of HANFA on Insurance Distribution and Remuneration in Connection with Insurance Distribution
The Croatian Financial Services Supervisory Agency (HANFA) issued this Official Position to clarify the interpretation of key provisions in the Insurance Act regarding insurance distribution and remuneration. It mandates that insurance intermediaries must promptly disclose whether they act on client instruction or on behalf of insurers, clearly specify the nature and structure of received remuneration (including commissions, fees, and non-monetary benefits), and ensure these disclosures do not mislead clients about actual costs. Furthermore, the document requires intermediaries distributing insurance investment products to implement robust organizational and administrative measures to identify, manage, and transparently report conflicts of interest, ensuring all incentives align with the best interests of consumers.