Insurance laws Portugal
Portugal's insurance legal framework is robust, aligning with European Union directives while incorporating national regulations to ensure consumer protection, market stability, and industry transparency.
📜 Key Legislation
1. **Insurance and Reinsurance Law (Law No. 147/2015)**This law transposes the EU's Solvency II Directive (2009/138/EC) into Portuguese law, establishing the conditions for conducting insurance and reinsurance business in Portugal It outlines requirements for licensing, solvency, governance, and supervision of insurance entities
2. **Insurance Contract Law (Decree-Law No. 72/2008)**This decree-law governs the formation, execution, and termination of insurance contracts, ensuring that consumer rights are protected and that contracts are clear and fair
3. **Insurance Distribution Law (Law No. 7/2019)**Transposing the EU Insurance Distribution Directive (IDD), this law regulates the distribution of insurance products, setting standards for intermediaries' conduct, transparency, and training requirements
🏛️ Regulatory Authorities
Autoridade de Supervisão de Seguros e Fundos de Pensões (ASF) The primary regulatory body overseeing the insurance and pension funds sectors in Portugal. It ensures compliance with legal and regulatory requirements, supervises market conduct, and protects policyholder.
Comissão do Mercado de Valores Mobiliários (CMVM) While primarily responsible for supervising the securities market, the CMVM also oversees insurance products linked to investment funds, ensuring transparency and investor protectio.
🧾 Taxation of Insurance Premiums
Life Insurance:
2.5% tax to the National Institute of Medical Emergency (INEM) on premiums related to life insurance in case of death and supplementary coves.
Exempt from stamp duty and VT.
Non-Life Insurance:
2.5% tax to INEM on premiums for sickness, accidents, land vehicles, and motor vehicle liabiliy.
stamp duty varies by insurance type, ranging from 3% to %.
Exempt from VT.
These taxes apply to premiums covering risks situated in Portugal or where Portugal is the member state of the commitment, regardless of the law applicable to the contrat.
🛡️ Consumer Protection and Discrimination Provisios
Portugal has implemented measures to protect consumers from discriminatory practices in insurac law No. 75/2021 prohibits insurers from offering less favorable contractual conditions based on disability or aggravated health risks, such as increasing premiums or imposing exclusions, unless justified by actuarial dt. his aligns with the "right to be forgotten" principle, allowing individuals who have recovered from serious illnesses to access insurance on equal tems.
🔄 Recent Developments
Governance in Pension Fund Managemen: In September 2024, the ASF established a governance system for pension fund management entities, enhancing oversight and ensuring compliance with best practices in governance, risk management, and transparncy
Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT: In November 2024, the ASF issued Regulatory Standard No. 10/2024-R, aligning with Law No. 83/2017, to strengthen measures against money laundering and terrorist financing within the insurance setor.
Motor Insurance Directive Complianc: Portugal has been urged by the European Commission to transpose the amended EU motor insurance directive into national law, following a missed deadline in December 2023. This directive aims to enhance protection for victims of road accidents and improve monitoring of compulsory motor insurnce.
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