European regulation changes the landscape

The recent update to the European regulatory framework for insurance distribution brings new requirements for transparency and consumer protection, with a direct impact on the way brokers and insurers communicate with their clients.

At Verspieren Portugal, we have been adapting our internal processes to ensure full compliance, while always keeping our focus on the quality of the advice provided to individuals and businesses.

What changes for those taking out insurance

The main change is the strengthening of the duty to inform before taking out a policy. Clients will now receive, in a standardised and comparable format, an explanation of the cover, exclusions and costs associated with each solution — including the intermediary's remuneration. The stated aim is simple: that the decision is made with the same level of information available to the seller.

Transparency is no longer a sales argument but has become a requirement. Those who already worked this way now have to be able to demonstrate it.

In practice, this means documenting the advisory process: what needs were identified, what alternatives were considered, and why that particular solution was recommended. This record-keeping is additional work, but it protects both parties in the event of a claim or dispute.

Conclusion

For businesses, the most visible effect will be on the management of portfolios with multiple policies, where the obligation for periodic review must now be evidenced. We recommend that corporate clients bring this review forward rather than aligning it with renewal.

We are available to assess, with no obligation, the level of compliance of existing policies and identify the points that require updating in light of the new rules.

We will continue to closely monitor regulatory developments, ensuring that our clients always benefit from the best conditions and maximum legal protection.