The insurance mediation has been officially recognized by Law. 792 of 20 November 1984, later replaced by the Legislative Decree of 7 September 2005 no. 209 that in article 106 defines insurance and reinsurance mediation (see Legislation).
The Broker is a licensed insurance mediator and the aim of his activity is to make contact between customers and insurance companies.
He receives specific assignments for the research and identification of insurance products that best meet clients needs, working independently and without being bound to the insurance company by dependence, partnership, branch or representative links, thus ensuring maximum protection of the the client / mandator’s interests.
All these features make the Broker the most likely professional to allow companies with registered offices in one of the European Economic Area countries to respect laws about LPS (freedom to provide services). Looking at the specific case of Italy, the cap (Code of Private Insurance) art. 24 states that companies with registered offices in the European Economic Area and that wish to qualify for the LPS, can not use branches, agencies or any other form of permanent presence in the Italian territory but they can sell their products on national territory through the “Broker”.