Legal framework of the insurance consultant activity in the interpretation of the Hungarian National Bank

As described in our previous article, the new Insurance Act (entered into force on January 1, 2016) has brought significant changes to the insurance consultants. Contrary to the previous insurance act, it does not regulate the activity of the insurance consultants. The change has an effect the public law and the contractual aspects of such activity.

In a recently published resolution (‘Resolution’) the National Bank of Hungary shared our interpretation. The regulator stated that the absence of legal provisions governing the insurance consultant’s activity means that as of January 1, 2016 such activity may be provided without any special supervisory requirements (e.g. license).

However, the Resolution emphasized that insurance consultants shall have thorough knowledge of insurance law that enables them to provide appropriate advice to their clients. Besides, the Resolution notes that insurance consultants shall not be entitled to provide client representation in relation to insurance claims before the insurers on a regular basis or in exchange of consideration, since under Hungarian law only lawyers can provide such services. Finally, the Resolution points out that insurance consultants are not entitled to provide insurance intermediary services.

Back to news