Portugal classifies MGAs as agentes de seguros (insurance agents) under the supervision of the Autoridade de Supervisão de Seguros e Fundos de Pensões (ASF). Insurance agents in Portugal act on behalf of insurers and are authorized to distribute insurance products and, where delegated authority is granted, to bind cover on the insurer’s behalf.

The authorization process in Portugal is insurer-initiated: it’s the insurer that submits the authorization request to the ASF on behalf of the agent. The ASF must decide an application for authorization as an insurance agent within 60 days from submission of the relevant request by the insurance undertaking (or, if the file isn’t considered complete, 60 days from the date of submission of the requested documentation or clarifications). The insurer must ensure that the agent meets all applicable requirements before initiating the registration.

Portugal has fully implemented the IDD, and authorized insurance agents can exercise EEA passporting rights under both the freedom of establishment and freedom of services regimes. The ASF coordinates the passporting notification process with other EEA regulators, facilitating cross-border operations for Portugal-based intermediaries.

Portugal doesn’t currently operate a specific insurtech regulatory sandbox for insurance intermediaries. But the ASF is taking palpable steps towards creating an insurance regulatory sandbox, as the result of a recent public consultation to market players. MGAs using innovative technology have to comply with the standard regulatory requirements applicable to insurance agents.

The acquisition or holding of a qualified participation in an MGA isn’t subject to an approval under Portuguese insurance law (only insurance brokers and reinsurance intermediaries are).

Portugal has transposed the IDD’s product oversight and governance (POG) requirements into national law. MGAs involved in product design or manufacturing must maintain POG frameworks, including target market identification, product testing, and distribution monitoring. The ASF supervises compliance with POG obligations as part of its broader supervisory activities.

There are no specific regulatory requirements in Portugal that affect the ability of MGAs to collect and handle premium and claims monies.

The agreement between the MGA and the insurance undertaking must expressly reference if the MGA has powers (or not) to collect any premiums or other monies from policyholders, and/ or powers to make any payments on behalf of the insurance undertaking.

Portugal imposes specific capital and PII requirements on insurance agents and requires financial autonomy, solvency and overall liquidity ratios to be equal to or exceed 10%, 15% and 100%, respectively, subject to a minimum share capital of EUR5,000, and minimum own assets requirement of EUR2,500. The minimum capital or professional indemnity insurance requirements for MGAs in Portugal are aligned with EIOPA guidance.

The insurer-initiated registration process is a key feature of the Portuguese framework. The fast authorization timeframe and full EEA passporting rights make Portugal a viable option for MGAs, particularly those targeting Iberian and Lusophone markets.