CAA clarifications on co-brokerage activities

On 1 April 2025, the Commissariat aux Assurances (CAA) published Information Note 25/5¹ (Note), which provides guidance on co-brokerage activities.

Background

The CAA has highlighted that some practices are wrongly defined as co-brokerage activities and, as such, aims to clarify the concept of co-brokerage and the CAA’s related regulatory expectations.

Key considerations

The Note provides a definition of co-brokerage activities and guidance on the content of co-brokerage contracts, the supervision of cross-border co-brokerage activities and on annual reporting of life insurance co-brokerage, as well as on co-brokerage practices involving sub-brokers that are deemed improper.

1. Co-brokerage activities

The CAA concedes that the concept of co-brokerage is not legally defined.

However, the CAA does specify that this concept should only refer to situations where a given broker who does not have all the necessary competences to best serve its client’s interests in relation to a specific insurance product refers the client to another broker specialising in the relevant insurance product, to advise the client thereon.

The CAA further provides a list of activities that are considered as constituting a provision of services rather than co-brokerage.

2. Content of the co-brokerage contract

The Note indicates that the CAA prefers the use of separate brokerage mandate agreements when multiple brokers are involved in working with one client.

The Note further specifies that the relevant agreement must detail the roles and responsibilities of each broker to ensure that all obligations imposed under the applicable rules of conduct are covered therein. If these details are not outlined in the contract, the CAA will verify compliance with all applicable obligations at the level of the Luxembourg-based broker.

3. Cross-border aspects

The Note provides that, as a matter of principle, cross-border co-brokerage activities must not hinder the CAA’s supervision of the insurance distribution process nor dilute the responsibilities of the co-brokers.

4. Reporting obligations

The CAA specifies the modules that should be used for the annual reporting of life insurance co-brokerage.

5. Improper co-brokerage practices

The CAA lists a series of observed co-brokerage practices involving sub-brokers that it deems to be incompatible with the status of a sub-broker and then reiterates a series of principles applicable to sub-brokerage arrangements.

1. Note d’information n°25/5 du Commissariat aux Assurances relative à la notion de « co-courtage »