Not every company can be an Affiliate Insurance Broker. To the contrary. A company that expects the recognition from the supervisory agency, has to be able to provide a corresponding approval that ensures the compliance with the statutory prohibition to pass on commissions. A prohibition that is used by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)) to obtain equitability of premiums for all insurance customers.

The legal basis for this is the insurance supervision law (Versicherungsaufsichtsgesetz (VAG)).

Exception rule in the insurance supervision law

The VAG (insurance supervision law) also contains the exception rule for Affiliated Insurance Brokers: it is expressly not considered a special compensation to make commission payments to an insured party, which simultaneously works as a broker for the relevant insurance company.

However, the broker relation may not be established for appearance only, just to provide payments to the broker for the company’s own insurances.

This requirement is monitored by the statutory supervisory authorities with the approval of the German Federal Financial Supervisory Authority (BaFin). To be recognized as a affiliated insurance broker, a regulatory approval is obligatory.

AVW is official Affiliate Insurance Broker 

The approval requirements governed by the approval of the German Federal Financial Supervisory Authority (BaFin) enable the insurance industry to recognize and remedy the abuses and distortions of competition that may arise when broker fees are granted.

The AVW has been inspected by the supervisory authorities and is approved for the housing and real estate sector as a affiliated insurance broker.