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 commercial company or a mutual co-operative insurance association and is entitled to pursue insurance business under the Law on Insurance and Reinsurance. Persons who have the right to establish an insurance company are defined in Article 29 of the Law on Insurance and Reinsurance.
In order to receive an insurance licence, 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 the provisions of the Law on Insurance and Reinsurance and the Regulations No 4 on the Issue of Insurance Licences, Obtaining Permits Regulating the Operation of Individual Insurance Companies, Documentation Harmonization and Reporting of 06.01.2016 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 3.7 million euro. For other commercial companies, the minimum initial capital shall be 2.5 million euro.
The Commission shall examine an application for obtaining insurance operating licence and take a decision within a six-month period after receipt of an application.
The Law on Insurance and Reinsurance 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: