Conflict of Interests in the Activities of Insurance Intermediaries

The conflict of interests that arise in the course of activities of an insurance intermediary have been considered in the article. It has been noted that the insurance broker is the generator of a conflict of interest, taking into account the specifics of funding activities. The purpose of this article is to analyze possible sources of conflict of interest of insurance intermediaries, in the process of implementation of insurance services, due to the specific of charge of the insurance brokers and insurance agents activities. Based on the results of the study, it has been noted that the insurance intermediary is an institution, smoothing the conflict of interests and finding consensus between the insurance company and the client. Conflict of interest in the activities of an insurance broker in Ukraine is solved only on a theoretical level because of the prohibition to brokers of acquisitions receipt. In practice, this only complicates the financing of its activities and triggers to use financial schemes, among which we highlight: the use of dual mediation, with the aim of obtaining compensation from the insurance company for the dependent or captive insurance agent, or through the conclusion of the contract consulting insurance broker – insurance company. It has been noted that the EU, with the aim of minimizing adverse effects of the implementation of conflict of interest in the insurance brokers activities use transparency and prior disclosure of conflict of interests in relation to the client. New rules aimed at regulating the activities of financial intermediaries, because their lack was one of the main reasons to mislead customers regarding the content and price of insurance services or filling and the cost of insurance coverage in relation to the client's needs. Definitely that the regulation of insurance brokers in the EU, focus is on insurance coverage, honesty and integrity towards the client and respect their own best interest, and therefore, de facto obligation to put the client's interests above their own business interests. Further development of research opportunities for insurance agents to represent several insurers, would to some extent neutralize the conflict of interests in activities of insurance multi agents and to introduce the Ukrainian market of insurance services of another insurance intermediary.