National Market Strategies

Changes for insurance intermediaries as a consequence of the 2008 Amendment to the Trade Act

The 2008 Amendment to the Trade Act (Federal Law Gazette I No 42/2008, entry into force 27 February 2008) entailed a few changes in the field of insurance mediation, in particular the following new features:

  • Secondary business activity (Nebengewerbe): the limit for the maximum sales volume has been raised from 10% to 20%. As of 31 December 2008, the relatively restricted concept of secondary business activity has been replaced with that of a limited business activity (eingeschränktes Gewerbe) with a more flexible scope. The permissible types of insurance are now listed in the Trade Act (cf. § 127 (2a))
  • The new § 137 (4) lays the foundation for rules on education and training for the new limited business activity.
  • Letterhead design: the fact that business was being conducted in the capacity of insurance intermediary already had to be visible on all business presentation items previously. Now the Trade Act places a stronger focus on a specific detail: the capacity of insurance intermediary has to be indicated in a clearly visible manner in the header or footer of the letterhead (§ 137 et. seq. amended Trade Act)
  • Notification of international business activities now has to be differentiated by temporary service provision or permanent establishment (amended Trade Act § 137d)
  • The notification of suspension of business activity, which had already been used previously to release the intermediary from the obligation of professional liability insurance while not actively pursuing the business, is now being expressly mentioned in the Trade Act (§93 (1))

Contact

Horizontal Enterprise Policy Division: post.i7@bmdw.gv.at

Last Modified: 12.01.2018 15:58