LAWS TO WATCH: Insurance Act
The proposed legislation partially aligns with the Solvency II Directive, in order to allow for the application of the European Insurance and Occupational Pensions Authority (EIOPA) measures. Insurance companies are obliged to implement management systems in line with the Solvency II Directive, which includes the risk management, compliance, internal auditing and actuary functions. Insurance companies are allowed to offer services in the areas of offering shares in investment funds and programmes for voluntary pension funds and pension insurance companies.
For life insurance and other insurance policies, capital stock is increased from €3 million to €3.8 million. The capital stock for re-insured policies is increased from €3.3 million to €3.7 million. The threshold for liable capital is increased from €34.5 million to €44 million. The threshold of solvency, comparable to premiums and damages, is also increased from €49 million to €62.9 million
Note: The legislation was sent to the Sabor urgent procedure…