The concept of agency and brokerage in insurance law

Abstract

The soliciting, negotiating or procuring of business of insurance in Malta is carried out either directly by a licensed local or foreign principal or indirectly via appointed representatives or intermediaries. This thesis considers the juridical character of two vital protagonists in the insurance industry, namely the insurance agent and insurance broker respectively. Beginning with a general overview of the law of agency, it goes on to examme the provisions governing the regulatory and supervisory aspects of insurance agents and brokers as envisaged in the Insurance Business Act (Cap 290), as well as the vital role played by the Malta Financial Services Centre, the appointed supervisory authority of insurance activities in Malta. The thesis further concentrates on the juridical relationship amongst the two insurance intermediaries, their principals and third parties. This has been accomplished by applying the provisions of the law of agency as refereed in the Commercial and Civil Code respectively and ample reference to English case-law. As to broking activities transacted at Lloyds, the unique usages and custom of the Lloyd's broker have been further discussed under a separate topic. Finally, the last chapter concerns the future regulation and supervision of insurance intermediaries, where proposals have been put forward aiming to overcome the number of shortfalls existent under the present insurance law.