Everything began with the prohibition to pass on commissions which is still valid today: it prohibits both insurers and insurance brokers from reimbursing a share of or the whole commission, representing fixed costs usually included in the premium, namely marketing expenses and remuneration for services provided (commission), or from providing other specific remuneration to the insured.

In the long run, this was unacceptable for companies which conducted the insurance acquisition themselves and also provided other services relevant for commission at their own costs. A way out of this situation: the establishment of their own Affiliated Brokers, which are as legally independent insurance brokers entitled to receive commission, and therefore enable the insurers to adequately compensate the marketing and service activities rendered by the company without violating the legal provisions. 
         

Approval procedure introduced

After an initial strong opposition by the large brokers (who – not completely without justification - fear a restriction of their access to the market segment of the large companies, which is considered especially lucrative) the parties in the insurance industry agreed that newly established Affiliated Brokers should be subject to an approval procedure. 

Strong market importance of the Affiliated Broker

For many decades, the institution of the Affiliated Insurance Broker has proven to be successful in the German market. Today the largest German industrial companies all have their own Affiliated Insurance Broker to cover its risks.

Undisputedly, as independent market participants with their own character, the approximately 300 companies acting in this manner have an important impact on the market development and contribute considerably to the activities in the insurance industry. Up to 60% of premium volume in the industrial business of the German insurance industry is generated by Affiliated Broker.