This page is part of the overview of Court of Justice insurance case law. It collects 3 judgments of the Court of Justice of the European Union on this topic, in chronological order, with a short synthesis. The summaries are written in our own words. Citation conventions, links and temporal application are explained on the overview page.
Synthesis
The Court interprets insurance mediation broadly: preparatory work for the conclusion of a contract is mediation even without the intention to conclude it (Länsförsäkringar), and an undertaking that offers customers, for a fee, membership of a group policy it has taken out is an insurance intermediary and distributor (TC Medical). An insurer's employee who lacks the required qualifications may not carry on insurance mediation as an ancillary activity outside a relationship of subordination with the insurer, even if the insurer supervises that activity (EEAE). The current framework is the Insurance Distribution Directive (EU) 2016/97 (IDD), transposed in Estonia by the Insurance Activities Act (kindlustustegevuse seadus).
Judgments
CJEU 17.10.2013, C-555/11, EEAE and Others
Preliminary ruling, Third Chamber · ECLI:EU:C:2013:668 · para 32 · Directive 2002/92/EC Art 2(3), second subparagraph, and Art 4(1); insurer's employee; professional requirements; ancillary mediation
Greek associations of insurance intermediaries challenged a rule allowing insurers' employees to engage in mediation as an ancillary activity. Interpreting the second subparagraph of Article 2(3) of Directive 2002/92/EC together with Article 4(1), the Court held that an insurance undertaking's employee who lacks the required qualifications may not pursue insurance mediation as an ancillary activity outside a relationship of subordination with that undertaking, even if it supervises the activity. Supervision alone does not exempt an independently acting intermediary from professional competence requirements. The ruling separates the insurer's own sales from mediation subject to the intermediary requirements (registration and professional competence).
CJEU 31.05.2018, C-542/16, Länsförsäkringar Sak
Preliminary ruling, Fourth Chamber · ECLI:EU:C:2018:369 · paras 45, 70 · Directive 2002/92/EC Art 2(3); concept of mediation; preparatory work; MiFID
In Sweden an intermediary had, with fraudulent intent, presented insurance products to clients; the dispute concerned his liability insurance cover. The Court held that preparatory work for the conclusion of an insurance contract is mediation even if the intermediary had no intention of actually concluding a contract (para 45), and that advice linked to the mediation of capital redemption life insurance falls under the Insurance Mediation Directive, not MiFID (para 70). Relevant to the scope of intermediaries' professional indemnity cover.
CJEU 29.09.2022, C-633/20, TC Medical Air Ambulance Agency
Preliminary ruling, First Chamber · ECLI:EU:C:2022:733 · para 59 · Directive 2002/92/EC; Directive (EU) 2016/97; membership of group insurance; distributor
In Germany a company offered customers, for a fee, membership of a group policy it had taken out covering illness abroad and repatriation. The Court held that such an undertaking is an insurance intermediary and distributor under both the former Directive and the IDD where it receives remuneration from customers for the cover. The ruling concerns add-on insurance (travel, cards, platforms) and the related registration and information duties.