EgeTrans is an insurance intermediary for cargo insurance
Freight forwarders offer services along the entire supply chain. This often includes arranging cargo insurance to protect the transported goods. However, this intermediary activity has been newly regulated by a judgment of the Court of Justice of the European Union (CJEU September 29, 2022, C-633/20).
This CJEU judgment redefines the concept of insurance mediation: Accordingly, freight forwarders are considered as insurance intermediaries if they procure corresponding insurance cover as the policyholder on the basis of a group insurance policy for the benefit of a third party and receive a fee from the customer. This applies to most freight forwarders.
What do these changes mean for freight forwarders?
In the course of transposing the judgment into national law, the previously freely accessible trade of insurance intermediary will be defined as an activity requiring a license in accordance with Section 34d (1) of the Trade Regulation Act (GewO). Due to a statutory registration requirement insurance intermediaries must be entered in a central register (Source: German Chamber of Industry and Commerce)
As a consequence, this decision affects companies that have so far brokered cargo insurance for a fee on the basis of an existing general policy, e.g. air and sea freight forwarders, shipping companies and parcel services. Due to the CJEU judgment, they are now considered as insurance intermediaries who require a corresponding license.
Product-accessory insurance intermediary
However, the legislation allows companies to apply for exemption from the obligation to be licensed (on the basis of Sections 34d (6) GewO and 34d (8) GewO) by the responsible Chamber of Industry and Commerce and register as a so-called “product-accessory intermediary”.
Compared to the insurance intermediaries the product-accessory intermediaries receive simplifications in the licensing procedure compared to insurance intermediaries requiring a license. As a product-accessory intermediary the brokerage of insurance must be ancillary and directly related to the main service provided by the trader. The freight forwarder has to own the permit exemption in order to be able to continue to broker cargo insurance for its customers. No insurance brokerage without permit exemption.
The following requirements apply for licensing as a product-accessory insurance intermediary
Permit exemption
EgeTrans Internationale Spedition GmbH has obtained the license exemption from the German Chamber of Industry and Commerce Stuttgart: Registration number D-63YU-7YKZ3-69
Accessoriness
The brokerage of insurance serves as a supplement to the goods delivered or services to be rendered within the scope of the respective main activity (=accessoriness).
EgeTrans Internationale Spedition GmbH exclusively brokers cargo insurance to its customers as a supplement to the logistics services provided.
Principal
The insurance brokerage is carried out directly on behalf of one or more insurance intermediaries with a license pursuant to Section 34d (1) GewO or one or more insurance companies.
A declaration of reliability has been issued confirming that EgeTrans meets the necessary requirements for acting as in intermediary (personal reliability, required qualifications, financial circumstances).
Professional liability
A suitable professional liability insurance policy is in place.
Register entry
Our entry in the register as a product-accessory insurance intermediary (D-63YU-7YKZ3-69) can be accessed via the website of the Germany Chamber of Industry and Commerce.
In view of the current legal situation, we have made the necessary changes to the process so that we can continue to provide you with a customized cargo insurance. Our team will be happy to advise you to find the cargo insurance that meets your specific requirements.
Get in touch with us. We will be happy to help you.