Active Commission Transparency Rules Apply As Of 1 July 2024

From 1 July 2024, the obligation for non-life insurance intermediaries and advisers to actively inform consumers about the amount of commissions to be received before the conclusion of an insurance contract will apply. This will convert the previously applicable passive commission transparency rules into active commission transparency. The aim is to stimulate the dialogue for consumers in relation to the service provision. The active transparency obligation does not apply to the corporate market. We will elaborate on the aspects of the active commission transparency rules that are relevant in practice.

Background

Since 2012, the Decree on Conduct of Business Supervision of Financial Undertakings under the Wft (Bgfo) has regulated that, upon request of the consumer, an intermediary or adviser in non-life insurance must inform the consumer about (the amount of) the acquisition commission or renewal commission it receives (see Article 86d Bgfo (old)). This is also