MEASURES AGAINST MALPRACTICES OF SOME FINANCIAL INSTITUTIONS INSURANCE

MEASURES AGAINST MALPRACTICES OF SOME FINANCIAL INSTITUTIONS INSURANCE

Recently it was announced that the Spanish Insurance Brokers Association of insurance ADECOSE had asked political parties for measures against malpractices of some financial institutions in the distribution of insurance. 

And it is that, while things have begun to change, the issue of Bank malpractice insurance is still a reality to the order of the day.

In this sense, ADECOSE has made to reach the most influential parties - people's Party, Socialist Party, citizens and can - its proposals relating to poor practices in the sale of insurance by some financial institutions, related financial loan and mortgage insurance bonding companies, with the intent that it be taken into account in their respective electoral programmes and can be made known the evident social contribution in this field.

MEASURES PROPOSED ADECOSE TO ELIMINATE THE MALPRACTICE INSURANCE OF FINANCIAL INSTITUTIONS

In the framework of the next transposition of the mortgage to the Spanish law directive, ADECOSE has asked political parties to be strengthened the de-linking of the insurance to mortgage taking measures that are being implemented in other European laws that guarantee greater protection to the consumer, as an example so don't have to necessarily subscribe to insurance offered by the lender when you hire a mortgage.

ADECOSE has also requested Parties to measures that impede enterprises, especially SMEs, have to compulsorily subscribe to insurance offered by financial institutions to gain access to credit, so can contract the insurance with the insurance company and the distribution channel for insurance who prefer in a market governed by fair competition.

In this regard, the Association recalled important measure adopted on his initiative in the promotion of business financing Act, since financial institutions, when there is a reduction or cancellation of the credit, should report a list of contracts of insurance linked to the flow of funding. This is a breakthrough since for the first time it is recognized in Spanish regulations existing insurance linked to the flow of financing offered by financial institutions. Therefore, this measure could take as a reference for future actions for the protection of the companies.

ABOUT BANK MALPRACTICE INSURANCE

I recommend that you read the article reflections on the business of sale of insurance of banks, in which we discussed the issue of Bank malpractice insurance.

Also the article will be interesting. Experts remind us that it is not obligatory to contract insurance with the mortgage, in which you talk about also your rights on hiring insurance when you make a financial transaction.