On Sep. 5, FIN PRL issued proposals to amend insurance legislation.
FIN PRL issued FIN STM's proposal on amending sections 58 and 72 of the Act on the provision of insurance, and the chapter 6 section 17 A of the Insurance company act.
Proposals Overview
In a presentation from FIN GVT, it is proposed to amend both the Act on the provision of insurance and the Insurance company act, to also include technical amendments.
The minimum euro amounts of the insurance broker's liability insurance according to the Act on the provision of insurance are proposed to be revised in order to implement various amendments that have been made to Insurance distribution directive (IDD).
An insurance broker must have liability insurance approved by FINFSA, which covers compensation for damages due to professional error, and it is proposed minimum euro amounts of insurance broker's liability insurance law on provision of advice be revised.
Based upon the proposals, in the future, the amount of liability insurance should be at least 1,564,610 euros per damage and total of 2,315,610 euros per year for damages.
According to the IDD, the euro amounts of professional liability insurance or other similar collateral required from insurance and reinsurance agents must be checked to take account of all the changes in Eurostat European consumer index, every five years.
Both the updated laws are now intended to enter fully into force as from Oct. 9, 2024.
Oct. 2024 Law to be Approved
On Oct. 24, 2024, FIN GVT said State Council proposed President approved law on the amendment of Sections 58 and 72 of the Act on the Provision of Insurance and the Act on the Amendment of Chapter 6 Section 17a of the Insurance Companies Act and orders that the law is to come into effect on Nov. 1, 2024.
Regulators
FIN GVT; FIN PRL; FIN STM
Entity Types
IB; Ins
Reference
PR 10/24/2024; Bill HE 87/2024 Vp, PR 9/5/2024; IDD Dir 2016/97
