Digital platforms and the requirements of the IDD and of solvency II, in particular with regard to the duties of a platform operator to provide information and advice—a German perspective

Abstract

This article explores the legal implications of digital platforms in the insurance sector, with a focus on the duties of platform operators to provide information and advice from a German perspective. Insurance comparison platforms function as intermediaries, necessitating a business license, as German law recognizes only brokers and agents. Since comparing insurance products qualifies as brokerage, platform operators are subject to corresponding obligations and liabilities. They must disclose if significant market segments, such as direct insurers, are excluded from rankings. If an operator excludes the ongoing duty to advise policyholders, this responsibility shifts to the insurer. Insurers may operate comparison platforms as non-insurance businesses under Art. 18(1) of the Solvency II Directive. The scope exception in Art. 3(5) of the Digital Content Directive applies to both insurance comparison and embedded insurance platforms. While sector-specific rules are justified in some cases, such as under the Digital Content Directive, they are not in others. Non-compliance with Art. 18 and 20 of the IDD may result in injunctive relief from competitors. Additionally, digital platforms can enhance risk assessment and claims settlement processes.