HDI is an insurance company which mainly sells its insurance products through a network of insurance intermediaries acting in the capacity of brokers. In exceptional cases a policy may also be directly underwritten by HDI, but only in the event of « large risks » within the scope of the Act of 4 April 2014 on insurances.
In the framework of its activity as an insurer, HDI may allocate remunerations («inducements sensu stricto ») to its intermediaries. HDI ensures that these remunerations and other non-monetary benefits are aimed at the direct or indirect improvement of the quality of the services provided. The remunerations and non-monetary benefits should in any case not affect the quality of the performance, nor should they prejudice the obligation to act in the interest of the client.
The general principles for the prevention of conflicts of interest are described in the conflict of interests policy of HDI.
The intention of the remunerations is to compensate the intermediaries for services rendered, such as providing the client with information on the possibilities and terms and conditions of the insurance, the thorough fulfilment of the general duty of care, including the required analyses to propose a suitable offer or, in the interest of the client, to improve the quality of the services rendered for the fulfilment of the insurance policy.
The remunerations may consist of:
1) the basic commission which is immediately imposed on the premiums paid by the client as a basic remuneration (in the shape of a percentage of the premium) for the mediation activities and the duty of care of the intermediary towards the clients. HDI uses percentages in line with the prevailing on the market and only deviates from these subject to a mutual agreement between the parties.
2) the supplementary remunerations calculated case by case as a percentage of the premium. For any supplementary remuneration an agreement is always entered into by HDI and the intermediary, and this type of remuneration is paid once a year.
The intermediary will ensure that the rules of the BVVM / UPCA are always observed.
In the interest of a durable cooperation, all broker agreements include the following clause:
In so far as the commission can be qualified as an «inducement sensu stricto »under MiFID legislation, the broker undertakes (i) to inform his clients clearly of the existence, nature and amount of this «inducement sensu stricto » before the insurance mediation service concerned is provided, (ii) to ensure that this «inducement sensu stricto » improves the quality of the services to the client, and (iii) to ensure that this «inducement sensu stricto » does not violate his obligation to promote the interests of this client.
For any additional questions, the company can be contacted by sending an e-mail to: firstname.lastname@example.org.