Insurance is a promise that is only put to the test when things go wrong. Taking out a policy directly online or at an insurer’s branch is quick, but it leaves the customer to do all the work of comparing policies, understanding exclusions and looking after their own interests in the event of a claim. It is precisely this work that an insurance broker does for you.

A role that carries real weight in the market

In 2024, there were 10,199 active insurance agents (6,416 individuals and 3,783 firms) and 68 insurance brokerages operating in Portugal, according to ASF figures cited by the ECOseguros (11 Dec 2025). Remuneration across the entire distribution channel, including banks, totalled 1,295 million euros, representing around 9 per cent of the 14,318 million euros in premiums. In most insurance policies for private individuals and SMEs, this remuneration takes the form of a commission already included in the premium, rather than an extra cost to the customer.

Direct recruitment, agent or recruiter: who does what?

Law No. 7/2019, which regulates the distribution of insurance in Portugal, recognises two categories of intermediaries: agents and brokers.

	Direct recruitment	Insurance agent	Insurance broker
Acts on behalf of	The insurance company	One or more insurance companies	The customer, acting independently
Comparison of proposals	Only products from this insurance company	Among the insurance companies it represents	Analysis of a wide and diverse range of insurance products available on the market
Personalised advice	Variable	Yes	Yes, based on an impartial analysis
Claims support	The insurance company is the other party	Accompanies and intercedes	You can handle the claim on behalf of the customer
Supervision	ASF	Registration with the ASF and professional liability insurance	Registration with the ASF, professional indemnity insurance and financial guarantee

  Brokers must be independent of any insurance company, both in terms of capital and management, and must work with several. Agents may be exclusive to one insurance company or represent multiple brands (ECOseguros).

What the law requires the mediator to do for you

The Insurance Distribution Directive, transposed by Law No. 7/2019, has strengthened the duties of intermediaries towards their clients (ECOseguros, set-top box). Before signing, you have the right to know:

• whether the broker acts on their own behalf or on behalf of an insurance company, and which insurance companies they work with;
• whether there are shareholdings of 10 per cent or more between the intermediary and any insurance company;
• how they are remunerated (commission included in the premium, fees or other means);
• if the advice given is based on a personal and impartial assessment.

The adviser must also identify your requirements and needs before recommending a product. They must meet suitability requirements and undertake at least 15 hours of training per year, and are required to hold professional indemnity insurance. If incorrect advice causes you financial loss, there is a guarantee in place.

5 things a mediator does that a website doesn’t

1. Translate the contract. Explain exclusions, excesses, waiting periods and cover amounts in plain language before signing.
2. Compare cover, not just prices. Two insurance policies with the same name may cover very different things. The cheaper one could end up costing you dearly when a claim is made.
3. Avoid being underinsured. According to Hiscox, 70 per cent of Portuguese SMEs report some level of underinsurance (Jornal Económico, 29 Jan. 2026). An underwriter adjusts the sums insured to reflect the actual value of what is being insured.
4. It’s on your side in the event of an accident. It helps you with the process, gathers the necessary documentation, keeps track of deadlines and liaises with the insurer when a response is delayed or unsatisfactory.
5. Review your portfolio every year. It updates capital sums, eliminates overlaps, identifies gaps and renegotiates terms when life or business circumstances change.

When does it make sense to hire directly?

For very simple, standardised products, such as a one-off travel insurance policy, taking out a policy directly may be sufficient for those who can read the general terms and conditions. However, the greater the amount at risk and the more complex the situation (a home, a business, a family’s health), the greater the value of professional advice. For a business, a mistake in categorisation could mean a claim goes uncompensated.

How to choose a good mediator

• Please confirm your registration on the ASF website.
• Ask which insurance companies they work with and request written quotes for comparison.
• Ask how you’ll be paid. It’s your right.
• Ask how they handle claims and who your direct contact is.
• Choose someone who asks questions about your situation before quoting you a price.

 

How Exato Seguros can help At Exato Seguros, we always start by listening: what you have, what you want to protect and how much you can invest. We then compare options, explain the differences without any small print, and are there for you throughout the life of the policy, especially when you need to make a claim. Book a free review of your insurance policies with our team. exatoseguros.pt                                                                                                 Just the right amount.

SOURCES

1. Mercer, April and MGEN top the insurance agents’ ranking — ECOseguros, 11 December 2025 (ASF data for 2024)
2. What will change in insurance distribution under the new regime — ECOseguros
3. Law No. 7/2019 — Legal framework for the distribution of insurance — Official Gazette
4. Three in four SMEs are unprotected, according to Hiscox — Jornal Económico, 29 Jan. 2026