The Ministry of Finance is amending the law to make purchasing insurance simpler and clearer.
People can now conclude an insurance contract through a car dealer or travel agency. This means these businesses can also offer insurance.
The insurance association is not happy with this change. The association's leader Tuuli Pärenson says customers will receive worse advice and prices will rise.
Currently, a professional insurance broker provides good advice and receives 14% of the insurance premium for it. If the broker delegates their work to someone else, the advice may not be as good.
Poorer advice means more confusion and disputes. Prices will rise because the new intermediary won't do this work for free.
Car dealers already sell insurance alongside cars. The head of the Automobile Association Meelis Telliskivi says the new law makes the process clearer.
Customers have the right to know how much the broker earns. This gives customers assurance that the car dealer has the right to sell insurance.
The car dealer must meet certain requirements and ensure customer safety. Insurance companies must verify that the car dealer has sufficient knowledge.
Tuuli Pärenson says the broker is responsible for their representative's mistakes. In practice, however, complaints are directed to the insurance company.
The agent's job is simpler because they sell one specific product. A broker, however, must know all options to help the client.