Business in the insurance sector has become increasingly transnational. It is not only insurers based in Sweden or other EEA countries that target the Swedish market, but also insurers from outside the European Economic Area that seek ways to offer their products in Sweden. This article sheds some light on the definition of insurance business under Swedish law and under what circumstances international insurers based outside the European Economic Area can conduct insurance business in Sweden.
In early 2019 the Council for Advance Tax Rulings declared that a unit-linked insurance plan where the beneficiary was entitled to 99% of the policy value on the realisation of the insured risk, without receiving any risk compensation from the insurer, did not constitute an insurance product. The case was recently appealed to the Supreme Administrative Court. This article analyses the case and provides an overview of Swedish insurance-based investment products regulation and the previous case law.
In late 2019 the European supervisory authorities released a joint consultation paper on proposed amendments to the EU Commission Delegated Regulation 2017/653 on packaged retail and insurance-based investment products. Insurance Europe and Insurance Sweden both submitted generally negative responses to the consultation paper. This article examines the proposed changes and the potential impact on the Swedish insurance market.
The Council for Advance Tax Rulings has further clarified the demarcation between insurance products and other investment products under Swedish law. The council found that a unit-linked insurance plan under which the beneficiary was entitled to 99% of the invested capital on realisation of the insured risk and the policyholder received no risk compensation during the insurance period did not constitute an insurance product under Swedish law.