How do proxies and assignment contracts work?
What is a proxy?
Insurance intermediaries have a responsibility for having the competence they claim to have. For insurance intermediaries to represent the customer in relation to the insurance companies, the customer issues a proxy, which is an authorization document stating that the intermediary has been assigned by the customer.
If the intermediary only helps the customer review an insurance situation, then an information proxy will suffice, which entitles the holder to obtain information about the customer's involvement with different insurers. An information proxy does not entitle the holder to request any measures in relation to the actual insurance contracts.
If the intermediary and the customer agree that the intermediary should assist the customer in the management of the customer's insurance policies, it is necessary for the customer to sign a so-called mediation proxy. In simple terms, it can be said that a mediation proxy places the intermediary in the customer's place and gives them the right to request measures for the customer's insurance policies. Some measures however may not be performed by the intermediary on behalf of the client, for example, making alterations to a beneficiary's appointment or undertaking to decide on investments in a personal insurance policy.
SFM has, in consultation with the insurance companies, developed proxies to ensure security for all parties involved.
What is an assignment contract?
If a customer and an insurance intermediary decide to cooperate, the SFM recommends that an assignment contract be concluded between the parties. With such a contract, the parties may, for example, regulate the content of the intermediary's service, and what the customer should do and what responsibility each party has. A written assignment contract provides a sense of security for both the customer and the intermediary.