FSMA enters into a settlement of 100,000 euros with Axa Belgium

Axa Belgium has been ordered to pay an amount of 100,000 euros as part of a settlement reached with the Financial Services and Markets Authority (FSMA), the latter announced on Thursday. A nominating publication will also be visible on FSMA’s website.

This payment is due to a human error that allowed an insurance intermediary that was no longer registered in the register to continue to carry out insurance distribution via the Axa Belgium platform.

The cooperation between Axa and the SPRL in question had ended on 4 April 2019, just before the latter was removed from the register of insurance intermediaries, on 9 April 2019. The procedure to end the cooperation involves in particular the blocking of producer accounts and the removal of producer mandates from Axa Belgium’s database. However, this blocking and withdrawal was not registered in the Belgian insurance company’s database, which allowed the former intermediary to carry out around a hundred insurance distribution operations through the Axa Belgium platform. The insurance company discovered and corrected the problem on June 25, 2019.

In Belgium, insurance companies are required to use intermediaries registered in the FSMA register. The latter therefore believed that Axa Belgium had breached its legal obligations. The insurance company has entered into a settlement and strengthened its procedure so that such a situation does not repeat itself.

In a reaction, Axa stated that customers “were at no time disadvantaged and that the established insurance contracts were fully respected by Axa”.

It is not the first time that an insurance company has been fined for similar breaches: Europ Assistance had previously experienced the same kind of problem.

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