Licensing of insurance companies
An insurance company is an undertaking, which is registered in the Republic of Latvia as a stock company or a European undertaking or a mutual co-operative insurance association that in accordance with the Law on Insurance Companies and Supervision Thereof has the right to perform insurance.
In order to receive a licence for the provision of insurance services, a newly-established insurance company shall submit to the Financial and Capital Market Commission (the Commission) an application for the issue of a licence for one or several classes of insurance, accompanied with the information and documentation in accordance with provisions of the Regulations No. 113 on the Issue of Insurance Company Operating Licences, Obtaining Permits Regulating the Operation of Individual Insurance Companies, Documentation Harmonization and Reporting of 25.09.2009. approved by the Board of the Financial and Capital Market Commission.
Commercial companies which have intended to obtain a licence for the following insurance classes: motor vehicle third party liability insurance, aircraft ownership liability insurance, ship ownership liability insurance, general liability insurance, credit insurance, suretyship insurance or life assurance, shall have the minimum initial capital of 3.5 million euro, which have been converted to lats in accordance with the exchange rate set by the Bank of Latvia on the day when the decision to issue a licence for the operation of the insurance company has been taken. For other commercial companies, the minimum initial capital shall be 2.3 million euro, which have been converted to lats in accordance with the exchange rate set by the Bank of Latvia on the day when the decision to issue a licence for the operation of the insurance company has been taken.
Mutual co-operative insurance association members which have intended to obtain a licence for the following insurance classes: motor vehicle third party liability insurance, aircraft ownership liability insurance, ship ownership liability insurance, general liability insurance, credit insurance, suretyship insurance or life assurance, shall have the minimum initial capital of 2.7 million euro, which have been converted to lats in accordance with the exchange rate set by the Bank of Latvia on the day when the decision to issue a licence for the operation of the insurance company has been taken. For other mutual co-operative insurance association members the minimum initial capital shall be 1.8 million euro, which have been converted to lats in accordance with the exchange rate set by the Bank of Latvia on the day when the decision to issue a licence for the operation of the insurance company has been taken.
The Commission shall examine an application for obtaining insurance operating licence and take a decision to issue or refuse a licence within a three-month period after the receipt of all the necessary documents. The Law on Insurance Companies and Supervision Thereof and other relevant regulatory rules for insurance business are available at: http://www.fktk.lv/en/law/insurance/laws/
Assessment criteria of the reputation of person:
Assessment criteria of the reputation of person