On May 29, NOR GVT issued position note on PII minimum rates.
NOR GVT published EEA position note on change of minimum rates for professional indemnity insurance as well as minimum requirements for financial capacity.
Follows EU CMSN Mar. 2024 issued Reg 2024/896 re PII rise in EU OJ, see #162813.
Summary
Reg 2024/896 amends Dir 2016/97 (the insurance distribution directive) with regard to minimum requirements for professional indemnity insurance and minimum financial capacity requirements for insurance and reinsurance intermediaries.
Sums for professional indemnity insurance, minimum financial capacity requirement for insurance/reinsurance intermediaries are to be consumer price indexed.
From Jan. 1, 2018 to Dec. 31, 2022, European consumer price index rose by 20.32%.
Reg 2024/986 amends art 10(4) of Dir 2016/97; professional indemnity insurance must now cover min €1,564,610 per claim; at least €2,315,610 per year for all claims.
Furthermore, Reg 2024/986 amends article 10(6) second paragraph (b) of Dir 2016/97 by increasing the minimum financial capacity requirement to €23,480.
Delegated Commission Regulation 2024/896 enters into force in EU on Oct. 9, 2024.
Norway Assessment
Regulation is EEA-relevant, but it has not yet been included in the EEA Agreement.
When the regulation has been included in the EEA agreement, it will be implemented in Norwegian law by amending the regulation to the Insurance Intermediation Act.
Decision enters into force on Jun. 13, 2024, provided that all the notifications under Article 103(1) of the EEA Agreement have been made.
Oct. 2024 Official Journal
On Oct. 3, 2024, EEA JC issued Dec 125/2024 of Jun. 12, 2024, in the Official Journal.
Decision in force on Jun. 13, 2024, provided that all notifications under Article 103(1) of the EEA Agreement have been made (no constitutional requirements indicated).
Dec. 2024 Update
On Dec. 12, 2024, EEA JC announced fulfillment of constitutional requirements notified by Liechtenstein on Dec. 9, 2024, EEA decision enters into force Feb. 1, 2025.
