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.
A recent Supreme Court judgment has clarified that the general principle of contract law, prescribing liability for damages in case of a breach of contract, can apply to corporate insurance contracts despite their unique features. Although the Supreme Court's judgment is limited to corporate insurance, it is difficult to see any reason against applying the same principles with respect to insurers' breach of insurance contracts taken out by consumers.
Group insurance is common on the Swedish market as the simplified risk assessment and low-cost administration enables relatively inexpensive cover for a wide range of situations. Despite its frequency on the market, it is sometimes difficult to apply the legal provisions regulating group insurance in practice. In addition, the enactment and implementation of several EU legislative acts have raised a number of issues that must also be considered.
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.
Almost four years after the implementation of the EU Solvency II Directive in Sweden, insurers are still devoting significant resources to identifying, understanding and putting into practice the complex regulatory legislation governing outsourcing arrangements. This article outlines some of the Swedish Financial Supervisory Authority's recent clarifications and comments on outsourcing and the main requirements surrounding insurers' outsourcing arrangements.
In the event of a hard Brexit, UK insurers must obtain authorisation as third-country insurers in Sweden in order to offer their products to the Swedish market. Notably, insurers that are uncertain of whether the business which they intend to conduct constitutes insurance business in Sweden and is thus subject to authorisation can apply for a preliminary ruling from the Swedish Financial Supervisory Authority on the issue.
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.