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Greece: New Intermediary Code of Conduct

A new Code of Conduct applies to local intermediaries with effect from 1 January 2014.

Wed 26 Feb 2014

The Bank of Greece introduced an Intermediary Code of Conduct with effect from 1 January 2014, under Executive Committee Act No. 31 of 30 September 2013. It applies to local intermediaries and intermediaries in other EEA member states that have passported into Greece on an establishment basis, with the exception of Articles 8 and 9(2), which do not apply to the latter. Article 8 is effective from 31 March 2014.

The purpose of the Code is to regulate the commercial relationships between policyholders, intermediaries and insurers and to set conduct standards for intermediaries. It includes:

  • General principles (Article 4)
  • Information that intermediaries must provide to their customers (Article 5).
  • Information systems (Article 6). 
  • The minimum information that must be included in a binding authority agreement (Article 8).
  • Premium collection (Article 9).

With regard to Article 8, there are two changes to note in respect of binding authority agreements with local intermediaries.

  • The coverholder’s Chamber of Commerce registration number, the Chamber of Commerce at which it is registered and its tax identification number must be included in the binding authority agreement. Lloyd’s recommends that this is inserted below the name and address of the coverholder in the binding authority agreement schedule on all binding authority agreements that incept or renew on or after 31 March 2014.
  • The Code requires that the Bank of Greece is notified when a binding authority agreement is terminated. With effect from 31 March 2014, managing agents are required to inform the Lloyd’s Country Manager for Greece when a binding authority agreement is terminated mid-term or not renewed and Lloyd’s will then notify the Bank of Greece accordingly.

Further details and a copy of the Code are available on Crystal under the Intermediary regulation and binding authority wording sections.