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companies to be deemed technically sufficient, they are required to
have an information system that is sufficient to be used in brokerage
activities, an adequate archiving system, an electronic data network,
and an electronic mail address. The features of the location where bro-
kerage activities are conducted shall be further determined by the
Treasury.
Brokerage Information System
The New Regulation envisages a secure and supplementary infor-
mation system called the Insurance and Reinsurance Brokers
Information System, in order to achieve and procure information
regarding brokers. Brokers shall contribute to the expenses arising
from this system. The procedures and principles of this system shall be
determined by the Treasury. In connection with this requirement, the
New Regulation does not mention the requirement of keeping a bro-
kerage book.
Granting of Brokerage Authority
As per the New Regulation, the brokerage authority shall be grant-
ed to the broker via a certificate of authority. However, if the broker
and the authorizing party are not able to convene, such authority may
be given orally or electronically. The scope, limits and the duration of
the authority shall be indicated in the certificate, and such authority
cannot be transferred to third persons. Brokers shall be obliged to pro-
vide the certificate of authority in submitting offers, and informing the
authorizing party regarding such offers and comparative prices.
The requirement of brokers to receive offers from at least three dif-
ferent insurance or reinsurance companies is not included in the New
Regulation. In addition, the New Regulation also removes the require-
ment of brokers to take necessary measures so as to allocate their port-
folio to several companies, and to notify the Treasury upon the con-
centration of their portfolio in one company.
Collection of Premiums
The provisions in the Former Regulation are mainly preserved
with regard to the collection of insurance premiums. Notwithstanding
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