Insurance laws Latvia
Latvia's insurance industry is governed by the Insurance and Reinsurance Law, which establishes the legal framework for insurance activities in the country. The law outlines the requirements for obtaining insurance and reinsurance licenses, the supervision of insurance and reinsurance activities, and the distribution of insurance products.
🏛️ Regulatory Authority
The primary supervisory authority for the insurance sector in Latvia is Latvijas Banka (the Bank of Latvia) It is responsible for licensing insurance and reinsurance companies, overseeing their activities, and ensuring compliance with the law Latvijas Banka also supervises insurance and reinsurance distribution, including brokers and agents
📄 Licensing Requirements
To operate as an insurance company in Latvia, an entity must:
Be a joint-stock company, a European commercial company, or a mutual insurance cooperative established in Latvi.
Obtain an insurance license from Latvijas Bank.
Meet minimum capital requirement:
**€4 million** for non-life insurance companies offering certain types of coverage (e.g., motor vehicle liability, aviation, maritime, general liability, credit, and guarantee insurance.
**€2.7 million** for other non-life insurance companies, including captive insurer.
**€4 million** for life insurance companie.
For companies offering both life and non-life insurance, the capital requirement is the sum of the minimum capital requirements for each type
Submit an application to Latvijas Banka, includin:
An operational pla.
Proof of the minimum capital deposi.
Documents demonstrating compliance with management and governance standard.
Information on shareholders and key personnel
🔍 Supervision and Complianc
Latvijas Banka conducts ongoing supervision of insurance and reinsurance activities to ensure compliance with the lw This includs:
Assessing the financial stability and solvency of insurance companis.
Monitoring compliance with capital and reserve requiremens. Ensuring that insurance companies maintain adequate governance and risk management frameworks
📢 Distribution of Insurance ProducThe distribution of insurance products in Latvia is regulated to ensure consumer protection and market integrt. Entities involved in insurance distribution mst:
Be registered with Latvijas Banka as insurance or reinsurance brokrs.
Insurance agents and ancillary insurance intermediaries must be registered with the insurance company they represent or with an insurance agnt.
Comply with the Insurance and Reinsurance Distribution Law, which sets out requirements for conduct, transparency, and disclosure
RELATED Blog
0 comments