Financial adviser - who are they? And who am I?
Friends, as it turned out, my hobby and blog have become my profession. Of course, this was initially my goal, which I worked towards step by step. I think it’s great when you like your job.
Today I want to figure out who “financial consultants” are when talking about the insurance sector and how they differ. Also, what other kinds of consultants there are and what is required for them to do this.
What is in this article
- What types of intermediaries exist and what licences do they hold
- How many intermediaries there actually are in Germany
- Who pays whom
- How to check a consultant before the first meeting
- Five signs that you are dealing with the wrong consultant
- Where to turn if a consultation results in damage
- Frequently asked questions
- How to become a financial adviser in Germany
What types of intermediaries exist and what licences do they hold
Versicherungsvertreter (insurance agent)
A representative of one or more insurance companies, for example an agent for Allianz or Barmenia. And also representatives of various associations that work with several companies.
Their advantage and at the same time disadvantage is that they know their company’s products well and can only offer them.
Their services are free
They receive their remuneration from the company once the contract has been signed
They can hold their own licence to carry out their activities or operate under their company’s licence
📌 This is the largest group: as at 1 July 2026, the register contained 97’780 tied agents and a further 27’272 agents with their own licences — together accounting for around 70 % of all intermediaries in Germany
Gebundener Versicherungsvertreter (tied insurance agent) — the largest category
This is an agent tied to a single insurance company. They do not have their own IHK licence and are not required to have one: under Section 34d (7) of the German Trade Regulation Act (GewO), the insurance company is liable for their intermediary activities, with no limit. The company itself enters them in the register.
For the client, there is both a plus and a minus here. The plus is a clear addressee for claims: the insurer is liable, rather than a private individual. The minus is that the choice is limited to the products of a single company.
There are more of these on the market than any other: 97’780 records out of 178’810.
Versicherungsmakler (insurance broker)
Acts on behalf of the client and works with all companies on the market.
Their advantage and at the same time disadvantage is that they can work with all companies on the market and choose truly the best offer for the client. In 2025, 469 insurers, Pensionskassen and Pensionsfonds were supervised by BaFin, including 77 life insurers, 43 health insurers and 193 property and casualty insurers.
Consequently, choosing the best one is indeed a difficult process.
Their services are free
They receive their remuneration from the company once the contract has been signed
🔸 They must hold their own licence to carry out their activities
📌 As at 1 July 2026, there were 47’244 brokers, which is approximately 26 % of all intermediaries
Versicherungsberater (insurance adviser) — independent fee-based consultant
The rarest category: as of 1 July 2026, there are only 338 of them in the whole of Germany. Acts as a universal, independent, FEE-BASED consultant in the client’s interest, working with all companies on the market.
Their strength – and at the same time their weakness – is that they can work with all the companies in the market and select the very best deal for the client.
They work in the client’s interests and are not tied to any company
🔸 Paid services
🔸 They must hold their own licence to carry out their activities
📌 And there are only 0.2% of these
Investments and mortgages are separate licences
Authorisation under § 34d only covers insurance. If the conversation turns to investments or residential property loans, other licences and other registers are required:
- Section 34f — investment product intermediary: funds, ETFs, closed investments.
- Section 34h — fee-only investment consultant: works solely for a fee from the client.
- Section 34i — mortgage broker.
That is why the question “what licence do you have” has a follow-up: for which specific product. A specialist holding only a § 34d licence is not authorised to advise you on investments.
How many intermediaries there actually are in Germany
The register is maintained by DIHK, which updates the statistics on a quarterly basis. Here is what the market looks like as of 1 July 2026.
- 97.780 — tied agents (§ 34d Abs. 7): operate under the responsibility of a single insurance company, do not have their own licence.
- 47.244 — insurance brokers (§ 34d Abs. 1).
- 27.272 — insurance agents with their own licence (§ 34d Abs. 1).
- 5.581 and 595 — ancillary insurance agents and brokers (§ 34d Abs. 6): insurance as an add-on to the main product, for example appliances or travel.
- 338 — fee-based insurance consultants (§ 34d Abs. 2).
In total, the register contains 178.810 records. Separate registers are kept for investments and credits: for investment intermediaries (§ 34f) — 41.388, fee-based investment advisors (§ 34h) — 375, mortgage brokers (§ 34i) — 58.014.
What follows from this. More than half of the market are people tied to a single company. Brokers account for roughly one in four. Paid consultants make up two tenths of a percent.
Over six months the picture shifted: between 1 January and 1 July 2026, there were 527 fewer tied agents and 293 more brokers. This trend has been ongoing for more than a year.
Source: DIHK intermediary register statistics, data as of 1 July 2026.
Who pays whom
This is the main question to ask before starting the conversation.
- Agent receives Provision (commission) from the company he represents. The more contracts he concludes for this company, the more he earns.
- Broker receives Courtage (broker’s commission) from the insurer with whom the contract is ultimately concluded. The client does not receive a separate invoice, and the premium is the same as when applying directly. At the same time, by law, the broker acts in the interests of the client, not the insurer.
- Paid consultant receives a fee exclusively from the client. He is strictly prohibited from taking money from insurance companies — § 34d para. 2 GewO. Furthermore, if there are options with and without intermediary remuneration for the same risk, he is obliged to give preference to the option without remuneration.
The conclusion is simple: “free” does not mean “disinterested”, and “paid” does not mean “objective”. You need to look at status and how many companies the person actually works with.
✔️ You can check any “financial adviser” in the official IHK register:
✅ Vermittlerregister (official register of intermediaries)
If they are not listed there, they are not permitted to provide advice or offer financial services.
How to check a consultant before the first meeting
- Find him in the register by name or company name: you can see the status, registration number and the year from which the permit is valid.
- Ask their status directly: agent, broker or paid consultant. The answer determines whose interests the person is working in.
- Find out how many companies he works with. An agent typically has one or two, whereas a broker works with the whole market.
- Be wary if a product is offered before they have understood your situation. The “product first, questions later” approach is a bad sign.
- A good consultant explains which insurances are not worth buying, and just as calmly which ones you really need to take out.
FINBER works as a Versicherungsmakler (insurance broker) with IHK licences under §§ 34d and 34i. We are not tied to any single company and select from the entire market. What is really worth taking out in Germany is set out in the overview important insurance policies, and what you will pay for anyway — in the article mandatory expenses in Germany.
What else you are legally entitled to demand
Erstinformation (initial information). At the first point of contact, the intermediary is obliged to provide you with “initial information” in text form—on paper, by letter, or as a PDF. Simply publishing it on a website is not enough. This must state the status, registration number, details of any equity participation in insurance companies, and the address of the conciliation body for complaints. The legal basis is § 15 VersVermV (Insurance Mediation Ordinance), and violations are subject to a fine of up to €250,000.
Professional indemnity insurance. It is compulsory for brokers, agents with their own licence and fee-based consultants: without it, no licence under § 34d is granted (§ 34d Abs. 5 GewO). From 9 October 2024, the minimum amounts are 1.564.610 € for an insurance claim and 2.315.610 € per annum (Delegated Regulation (EU) 2024/896). This is client protection: if the adviser makes a mistake, their insurance covers the damages.
Professional development. Under § 34d paragraph 9 of the Trade Regulation Act (GewO), an intermediary is required to complete at least 15 hours of training per year. This requirement also applies to employees who directly advise clients.
How this looks in practice. Check this: Valery Melech works as an insurance broker (Versicherungsmakler) under § 34d para. 1 and as a property loan broker (Immobiliardarlehensvermittler) under § 34i, and is registered with the IHK Rhein-Neckar. The register numbers are D-HIAG-TDBW7-60 and D-W-153-ABGZ-14. You can enter them into the registry search right now.
Five signs that you are dealing with the wrong consultant
None of these signs is damning on its own, but each one is a reason to slow down.
- Refuses to state his status or registration number. By law he is obliged to.
- Does not provide the Erstinformation in text form and suggests “looking on the website”.
- He calls himself independent, but offers products from one single company.
- They are rushing the signing and insisting on a decision at the very first meeting.
- Promises returns or a guaranteed profit without analysing your situation and without documents.
A separate sign is when they sell you what you don’t need. We discussed typical cases above. You should be especially careful with contracts that are entered into for decades — for example, with disability insurance: correcting a poor choice there costs more than anywhere else.
Where to turn if a consultation results in damage
Out-of-court dispute resolution bodies are free of charge for the client, and you do not need a lawyer.
- Versicherungsombudsmann e. V. (German Insurance Ombudsman) — disputes regarding most types of insurance, including the work of the intermediary. Website: versicherungsombudsmann.de
- Ombudsmann für die private Kranken- und Pflegeversicherung (Ombudsman for Private Health and Long-Term Care Insurance) — if it’s a matter of private medical insurance or care insurance. Website: pkv-ombudsmann.de
- IHK, which issued the licence — the supervisory authority. People turn here if the admission rules are violated: there is no licence, no Erstinformation, or no liability insurance.
When it comes to an already signed contract, you should first understand what exactly you have and within what timeframes it can still be cancelled: we have explained what the difference is between Kündigung (termination) and Widerruf (withdrawal).
I have chosen to become a Versicherungsmakler with a 34d licence.
🔷 I find the best options on the market
🔷 My services are free of charge for you
🔷 I am not affiliated with any company and am not required to promote any particular company’s product
And as you know, I decided not to stop there.
✅ And I’ve now been granted a new licence 🟢 as an ‘Immobiliardarlehensvermittler’ – a property mortgage broker – so I can now help you with this.
There are further plans for development, but more on those later.
Valery Melech
Frequently asked questions about financial advisors in Germany
Does the profession of “financial advisor” exist in Germany?
No. The law recognises Versicherungsvermittler (insurance intermediaries), Versicherungsberater, Finanzanlagenvermittler (financial investment intermediaries) and Immobiliardarlehensvermittler. “Financial consultant” is a marketing term: behind it could be any of these statuses or none at all.
Are the broker’s services really free for the client?
Yes, the client does not receive a separate invoice. The broker receives Courtage from the insurer with whom the contract is ultimately concluded. The premium remains the same as when taking out the contract directly.
How is a Versicherungsberater better than a broker?
He receives nothing from insurance companies and works for your fee. The format is justified in complex cases. But there are only 338 such specialists in the whole of Germany, and the service is not free.
Can several licences be combined?
Within § 34d – no: Vertreter, Makler and Berater are mutually exclusive. However, licences from different registers can be combined: for example, § 34d (insurance) and § 34i (mortgage lending).
What should you do if the consultant is not on the register?
Do not sign anything. Unlicensed activities are prohibited, and in such cases, there is no relying on professional indemnity insurance.
Is anyone liable for a tied agent’s error?
Yes. Under Section 34d (7) of the Trade Regulation Act (GewO), the insurance company is fully liable for the intermediary activities of a tied agent — which is why the agent does not need a licence of their own.
How to become a financial adviser in Germany
In this video, we share our personal experience of what needs to be done to become a financial advisor in Germany.
This section contains a video from YouTube. To watch it, click the button below. Doing so will share data with Google.
More informationAny questions? Write to us and we will reply in detail.
About the author. Valery Melech, Finber. Versicherungsmakler (insurance broker) licensed under Section 34d(1) GewO and Immobiliardarlehensvermittler (real estate loan broker) under Section 34i GewO, registered with the IHK Rhein-Neckar. Intermediary register numbers: D-HIAG-TDBW7-60 and D-W-153-ABGZ-14. Over 20 years of practice, approximately 6’000 clients, upwards of 400 partners.
Sources: Gewerbeordnung (Trade Regulation Act) § 34d; Versicherungsvermittlungsverordnung (Insurance Mediation Ordinance) § 15; Delegated Regulation (EU) 2024/896; DIHK intermediary register statistics as of 1 July 2026.
Status. Data checked in August 2026. Registry statistics are updated quarterly, and minimum insured sums are reviewed at EU level—we review the figures on this page at least once a year.
This material is for informational purposes only and does not constitute individual advice. A specific product can only be selected after an analysis of your situation.
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Good afternoon, my husband was a German citizen; he passed away in 2019 at the age of 44. We were married for 11 years and lived in Ukraine throughout that time. Am I eligible to claim a widow’s pension? He paid tax in Germany from 1991 to 2008. Thank you.
Hello.
If your husband receives a German pension and has paid contributions towards it, then yes – you can claim a widow’s pension.