SWEDEN Law and Practice Contributed by: Viveka Classon, Karin Rättzén and Sara Stålebring, Advokatfirman Vinge KB
1. Basis of Insurance and Reinsurance Law 1.1 Sources of Insurance and Reinsurance Law Statutory law is the primary source of law within the Swedish legal system. Statutory provisions are inter- preted through preparatory work and case law. Pre- paratory work is regarded as an important source for ascertaining the legislative intent behind a provision, and is considered to offer an authoritative interpreta- tion, provided that it is relevant and duly applicable. Although the Swedish courts are not formally bound by precedent, the lower courts typically treat higher court decisions as de facto binding in practice, par- ticularly when adjudicating similar cases. The main legal framework governing insurance and reinsurance business in Sweden includes the Insur- ance Business Act ( Försäkringsrörelselag (2010:2043)) (the IBA) and the directly binding Commission Del- egated Regulation (EU) 2015/35 (the Solvency II Regulation), alongside regulations and guidelines issued by the Swedish Financial Supervisory Authority ( Finansinspektionen ) (the Swedish FSA) and the Euro- pean Insurance and Occupational Pensions Authority (EIOPA). The Insurance Distribution Act (Lag (2018:1219) om försäkringsdistribution ) (the IDA) applies to all distribu- tors of insurance and reinsurance products. It is sup- plemented by implementing and delegated acts under the Directive (EU) 2016/97 of the European Parliament and of the Council on Insurance Distribution (the IDD), regulations and guidelines issued by the Swedish FSA, and guidelines issued by EIOPA. The main legal framework for foreign insurers con- ducting business in Sweden is the Foreign Insur- ance Activities Act (Lag (1998:293) om utländska försäkringsgivares och tjänstepensionsinstituts verk - samhet i Sverige ) (the FIAA). Insurance contracts governed by Swedish law must comply with the Swedish Insurance Contracts Act ( Försäkringsavtalslagen (2005:104)) (the ICA). The ICA does not apply to reinsurance contracts. The appli- cable law for insurance contracts concerning risks
situated in Sweden is determined by Regulation (EC) No 593/2008 of the European Parliament and of the Council on the law applicable to contractual obliga- tions (the Rome I Regulation), which restricts the par- ties’ freedom to choose applicable law. 2. Regulation of Insurance and Reinsurance 2.1 Insurance and Reinsurance Regulatory Bodies and Legislative Guidance The Swedish FSA is responsible for the supervision, authorisations, sanction assessments, regulations and reporting matters of the insurance industry. For cross-border activities within the EU, the Swedish FSA cooperates with other member states’ regula- tory bodies. The IBA and the Solvency II Regulation constitute the main legal framework applicable to insurance and reinsurance business in Sweden. Supplementary company law for most insurance companies is pro- vided in the Swedish Companies Act ( Aktiebolagsla - gen (2005:551)) (the SCA). In addition, the Swedish FSA issues regulations and general guidelines that must be observed. Guidelines and recommendations issued by EIOPA have, upon translation into Swed- ish, the same status as the Swedish FSA’s general guidelines. In other words, they must be followed, but firms can determine the manner in which they meet requirements on a “comply or explain” basis. Foreign insurance undertakings conducting insurance business in Sweden are primarily subject to the FIAA and regulations and general guidelines issued by the Swedish FSA. The ICA must be adhered to if the insurance contract is governed by Swedish law. The ICA does not apply to reinsurance contracts. The choice of applicable law on insurance contracts concerning risks situated in Sweden is governed by Regulation (EC) No 593/2008 of the European Parliament and of the Council on the law applicable to contractual obligations (the Rome I Regulation), which restricts the right of the parties to choose the applicable law.
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