"Good Practices in Brokerage Activity" – Selected Dilemmas

Abstract

The article examines the publication "Good Practices in Brokerage Activity" published in 2021 by the Association of Polish Insurance and Reinsurance Brokers. The project aims to update good practices in the brokerage activity (hereinafter: Good Practices) and should be considered a positive initiative, because the existing Broker's Code of Ethics which was adopted on 23 May 2013 as well as the Principles of Good Practices and Cooperation of Insurance Brokers and Insurance Companies published in 2000 do not solve all problems which the market is currently facing. In addition, brokerage activity has been scarcely regulated under private law. Given the above, established customs and principles of social coexistence are particularly important for brokerage services in connection with Article 56, Article 65 § 1 and Article 354 of the Polish Civil Code. Not only do the draft Good Practices refer to the conduct of brokers, but they also contain a number of standards of conduct meant for insurance companies. As a result, this document ought to be acknowledged by insurance undertakings (their professional associations). On the other hand, it should be emphasized that Good Practices will not be binding on brokers who are not members of the Association of Polish Insurance and Reinsurance Brokers. Although Good Practices contain a lot of recommendations that deserve an unequivocally positive assessment, there are some provisions therein that may provoke controversies. The purpose of the article is to draw attention to the provisions which may require further work and discussion.