LAWS TO WATCH: Insurance Act

lalovac23 February 2015, LPJ Croatia Issue 121

The legislative changes integrate and implement the EU directives Solvency II and Omnibus II. The objectives of the directives, which need to be implemented by 31 March 2015, are related to capital adequacy, risk management, the regulatory controlling process and a new reporting standards.

According to the proposed amendments, insurance companies will be able to provide insurance and reinsurance services without the need of establishing a separate legal entity for the provision of reinsurance. For companies registered in Croatia, they must have authorisation from the regulator HANFA.  With the approval of the supervisory authority, companies registered in another EU member state will be able to provide insurance and reinsurance services in Croatia through the right of establishment and freedom to provide services.

In technical inspection stations, insurance companies will only be able to provide motor vehicle accident and liability insurance.  The amendments allow companies to provide insurance services for road vehicles, goods in transit, costing legal protection and help / assistance.

Proposed by: Ministry of Finance

Note: The legislation was sent to the Sabor urgent procedure…

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