What happens to my policies if my insurance broker stops working?
In short
What happens to my policies if my insurance broker stops working? Your policies continue unchanged, because the contract is between you and the insurer. Only who looks after you changes. A successor only becomes your broker once you give him a mandate and power of attorney (Maklervollmacht). Your premium stays the same, the service costs you EUR 0, the commission is paid by the insurer.
The family pays nothing more and cancels nothing. It only decides who looks after it in future.
Your policies do not depend on the broker
An insurance broker (Versicherungsmakler) arranges your policies, but your contract partner is the insurer. If your broker stops, whether through retirement, selling the client base, insolvency or death, your policies remain valid. Premium, cover and term do not change.
What falls away is the service: someone who reviews your policies, passes on changes and explains what to do after a loss. This role is taken over by a successor you accept, another broker of your choice, or initially the insurer itself.
What happens
Your policies
Your service
Broker sells the client base to a successor
continue
successor, if you agree
Broker retires without a successor
continue
insurer directly or a new broker of your choice
Broker dies
continue
heirs must report the death and handle urgent matters
Broker loses the licence
continue
new broker or insurer directly
If a successor takes over the client base
Many brokers sell their client base when they stop. What is sold is the right to look after the clients and the future commission. Your broker contract and your power of attorney do not simply pass on: the successor needs your mandate to act for you.
Your old broker may not simply hand over your data either. Passing it on needs a legal basis under Art. 6 GDPR, for example your consent. You may refuse and look for another broker; your policies are not affected.
If the broker dies
A broker contract is a contract for the management of affairs. Under sections 675 and 673 BGB such a mandate ends, in case of doubt, with the death of the agent. The heirs must notify you without delay and continue matters where a delay would be dangerous until you can make other arrangements.
If your broker is a limited company or a larger firm, the death of an employee does not change your contract; your contract partner is then the company.
Without a successor: the insurer looks after you directly
If no successor is found, the insurer initially manages your policies itself. You contact it directly about changes and claims. That works, but nobody compares tariffs for you or checks whether a policy still fits.
You can appoint a new broker at any time. With your power of attorney he contacts the insurer and the policies continue through him without you having to cancel anything.
What happens to old advice errors
If your old broker gave you wrong advice, he remains liable even after stopping work; on death such obligations pass to the heirs. Under section 34d of the Trade Regulation Act (GewO) insurance brokers must hold professional indemnity insurance so that such claims do not come to nothing.
Such claims generally become time barred after three years (section 195 BGB). The period starts at the end of the year in which you learn of the damage and who is responsible (section 199 BGB). A successor does not automatically take on errors of his predecessor.
When you don't need to do anything
If you know the successor, he is listed in the broker register (Vermittlerregister) and suits you, agreeing to the takeover is usually enough. Your policies then continue without interruption.
You also do not need to cancel or take out anything new just because your broker stops. Never cancel a running policy for this reason; a new contract may be more expensive and bring new waiting periods or health questions.
Step by step
Read the broker's letter: who takes over, from when, what should be signed?
Check the successor in the broker register: registered as broker or only as tied agent?
Decide whether to agree or appoint another broker.
Make a list of all policies with policy numbers and keep copies.
Follow up ongoing claims directly with the insurer until the new service is in place.
Raise possible advice errors of the old broker early, before they become time barred.
Checklist
All policies with numbers and insurer noted
Successor checked in the broker register
Consent to data transfer given or refused deliberately
New power of attorney only for the broker of your choice
No policy cancelled just because the broker stopped
Open questions about old advice errors clarified
Common mistakes
Cancelling policies because the broker stops and taking out new, more expensive ones
Signing a power of attorney for the successor without checking him
Believing you have to accept the successor
Letting claims for old advice errors become time barred
Questions and answers
Frequently asked
Do I have to accept my broker's successor?
No.
He only becomes your broker once you give him a mandate.
You can choose another broker at any time.
Will my insurance become more expensive if my broker stops?
No.
The premium depends on the contract with the insurer, not on the broker.
The insurer keeps paying the commission to whoever looks after you.
May my broker pass my data to the buyer of his client base?
Only with a legal basis under Art.
6 GDPR, for example your consent.
You may object to the takeover.
What happens if my broker dies?
Your policies continue.
The broker contract ends in case of doubt,
and the heirs must notify you and handle urgent matters until a new solution is found.
Who helps me with a claim if my broker is gone?
Report the claim directly to the insurer.
Once a new broker has your power of attorney, he can support you.
Is the successor liable for my old broker's errors?
Not automatically.
Claims are against the old broker or his heirs, backed by his professional indemnity insurance.
