Until that point, it had not been difficult to become an insurance broker; freedom of economic activity meant that all anybody who wished to pursue a career
in this industry had to do was acquire a corresponding trade licence before they could call themselves an insurance broker. Qualifications did not enter the equation.
Fortunately, this is no longer the case. Anybody wishing to pursue a career as an insurance broker must now register with the responsible chamber of industry and commerce
and meet a range of requirements to qualify for a permit:
1. Reliability and orderly financial circumstances
2. A certificate of professional competence
3. A certificate of third-party financial loss insurance
Two aspects of particular importance to us are:
1. The definition of "broker" offered by the Industrial Code and the German Insurance Contract Act (VVG) is not identical to the occupational profile of a broker provided by the BDVM (Association of German Insurance Brokers e.V). This is because paragraph 59 of the VVG and 34 d(1) of the Industrial Code only make reference to the fact that insurance brokers operate independently of insurers. The BDVM insurance broker, in contrast, has dual independence: They act independently of the insurer and also of the policy holder.
2. The BDVM, as an association of reputable brokers, places significantly higher demands on its members than are written into German law relating to brokers – particularly with regard to expertise, the number of members in the profession and the scope of third-party liability insurance.