Financial intermediaries in cooperation with insurance companies want to cultivate the market of insurance services by building a register of intermediaries

A new register of financial advisors to be developed by CCB.​
The Association of Financial Intermediaries and Financial Advisors of the Czech Republic (AFIZ), the Union Company of Financial Intermediation and Counseling (USF) and some insurance companies that provide services especially in the area of life insurance, in cooperation with CCB - Czech Credit Bureau a.s. are  going to prepare a register of financial intermediaries. The Association of Czech Insurance Brokers (ACPM) will closely cooperate on the project as well.
 
The new register will help the individual market participants to preventively protect themselves and especially their clients against various unethical or illegal behaviors of some intermediaries that exist in the area of the market for distribution of financial services. Although the total volume of service providers contains a relatively small number of these entities, they are not only causing significant financial harm to individual market participants, but in particular they are damaging the reputation of this  professional occupation in the public and intefering with confidence among financial service providers and clients.
Representatives of these particular associations, and especially their individual member companies, are working on increasing long-term market prestige, financial intermediation and increasing its credit in consumers. Agreeing to make improvements when creating this particular register of financial intermediaries is another logical step in this activity. Registry project titled "ELIXIR" should help   individual users in the near future  to detect any unreliable behavior of business partners in this segment and  prevent the irreversible loss of clients trust. The project is now at an advanced stage of preparation, and the launch of the pilot phase is planned for the second half of this year.
"This project clearly demonstrates that the market is willing and able to agree on effective self-regulation and does not need to be dictated by the law, which unfortunately the Treasury market is trying without prior discussion" says Martha Gellová about the project ELIXIR, Secretary General AFIZ.
The new register allows efficient and rapid exchange of information between  participating companies, which provides easy history verification of the activities of individual agents in terms of quality and their place of work. Reputable companies associated with the above associations devote significant resources to supervise the quality of services provided by their intermediary networks to not only meet the legal framework of this activity, but often much stricter ethical codes of their association. In the long run,  without effective cooperation they still cannot  prevent the emergence of  negative fluctuation of the market behavior.
" At the first stage information from the ELIXIR will be available only for its active members; however with the gradual development of new registry services  we are expecting to launch its public area, where potential clients will be able to obtain basic information about the brokers involved in the project. Clients will benefit from an overview  of agents who have nothing to hide  and who havegiven permission for their activity in the market to be monitored by the registry, "said Petr Kucera, Managing Director of CCB - Czech Credit Bureau.
 

ELIXIR - the register of financial intermediaries would primarily increase awareness in insurance and respectable companies about the history and possible violation of individual brokers or consultants--if they provide a wider portfolio of services, not just insurance "in the field". This will result in a more transparent market for consumers as well, because established and  professional consulting companies will be able to better guarantee the quality of actions of their colleagues.
"We eagerly welcome the ELIXIR project, it is another activity aimed at further streamlining the market.  The positive effects which arise from the sharing of information should  especially benefit the end consumer, which is crucial from the USF perspective , "said Ing. Igor Bielik, Chairman of the USF.
Unreliable "advisers", respectively intermediaries, will have a noticeably more complicated situation  to come to an agreement with reputable companies or directly with insurers or other financial service providers such as banks, building societies, pension funds and other entities where there is a distribution of financial services through indirect sales. Although the project ELIXIR services primarily in the insurance sector, the platform is ready for the multi-sectoral exchange of information, especially on the above market segments (banking products, building savings, pension insurance, etc.).
"The Association of Czech Insurance Brokers welcomes any activity that will support increasing the quality and professionalism of insurance intermediaries in the Czech market. We therefore support  project ELIXIR, which should help to cultivate our market," said Ivan Špirakus, Deputy ACPM.