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Insurance Distribution Agreement
"Need to draft an Insurance Distribution Agreement for our Hong Kong-based life insurance company to appoint ABC Insurance Brokers Limited as our authorized distributor, with exclusive rights to distribute our retirement products to high-net-worth clients, planned to commence from March 1, 2025."
1. Parties: Identification of the insurer and distributor, including their regulatory status and licenses
2. Background: Context of the agreement, including the parties' business relationship and regulatory framework
3. Definitions: Key terms used throughout the agreement, including regulatory terminology
4. Appointment and Scope: Terms of appointment, territory, and products covered under the distribution agreement
5. Regulatory Compliance: Obligations regarding Insurance Authority requirements, licensing, and ongoing compliance
6. Duties and Responsibilities: Specific obligations of both parties, including sales processes, documentation, and reporting
7. Commission and Payment Terms: Commission structure, payment terms, and related financial arrangements
8. Training and Support: Requirements for product training, sales support, and ongoing professional development
9. Data Protection and Confidentiality: Obligations regarding customer data handling and confidential information
10. Record Keeping: Requirements for maintaining records as per regulatory requirements
11. Intellectual Property: Usage rights for brands, trademarks, and marketing materials
12. Term and Termination: Duration of agreement and circumstances for termination
13. Post-Termination Obligations: Duties and responsibilities after agreement termination
14. Indemnity and Liability: Risk allocation between parties and insurance requirements
15. General Provisions: Standard clauses including notices, amendments, and governing law
1. Marketing and Promotion: Specific arrangements for marketing activities and approval processes - include when distributor will conduct marketing activities
2. Performance Targets: Sales targets and performance metrics - include when parties agree to specific targets
3. Sub-Distribution Rights: Rights and conditions for appointing sub-distributors - include when sub-distribution is permitted
4. Digital Distribution: Specific provisions for online sales and digital platforms - include for digital distribution channels
5. Claims Handling: Procedures for claims processing and support - include if distributor has claims handling responsibilities
6. Premium Handling: Procedures for collecting and handling premiums - include if distributor handles premium collection
7. Non-Compete: Restrictions on distributing competing products - include when exclusivity is required
8. Service Levels: Specific service level agreements and KPIs - include when particular service levels are crucial
1. Schedule 1 - Products: List of insurance products covered under the agreement with detailed descriptions
2. Schedule 2 - Commission Structure: Detailed commission rates, calculations, and special arrangements
3. Schedule 3 - Territory: Detailed description of authorized distribution territory
4. Schedule 4 - Regulatory Licenses: Copies or details of relevant regulatory licenses and authorizations
5. Schedule 5 - Operating Procedures: Detailed procedures for sales, documentation, and compliance
6. Schedule 6 - Reporting Requirements: Templates and specifications for required reports
7. Appendix A - Marketing Guidelines: Guidelines and requirements for marketing and promotional activities
8. Appendix B - Data Protection Requirements: Detailed procedures for handling customer data and maintaining confidentiality
Authors
Insurance
Financial Services
Banking
Wealth Management
Financial Technology
Retail Banking
Corporate Banking
Digital Insurance
Insurance Broking
Legal
Compliance
Distribution
Sales
Business Development
Operations
Risk Management
Product Development
Partner Relations
Channel Management
Regulatory Affairs
Chief Executive Officer
Chief Distribution Officer
Head of Sales
Compliance Officer
Legal Counsel
Distribution Manager
Partnership Manager
Business Development Director
Chief Operating Officer
Risk Manager
Insurance Products Manager
Regulatory Compliance Manager
Channel Development Manager
Agency Director
Broker Relationship Manager
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