SWEDEN Law and Practice Contributed by: Viveka Classon, Karin Rättzén and Sara Stålebring, Advokatfirman Vinge KB
The marketing of insurance services in Sweden, whether such services are provided by Swedish or non-Swedish insurers, is regulated by the Swedish Marketing Act ( Marknadsföringslagen (2008:486)) and regulations and recommendations issued by the Swedish FSA. 2.2 Writing of Insurance and Reinsurance A Swedish company may conduct insurance or rein- surance business in Sweden only after having been duly authorised by the Swedish FSA pursuant to the IBA. Authorisation is only granted to a company lim- ited by shares ( försäkringsaktiebolag ) (insurance com- pany), a mutual insurance undertaking ( ömsesidigt försäkringsbolag ) (mutual insurance company) or an insurance association ( försäkringsförening ) (insurance association). Authorisation to conduct insurance business in Swe- den is granted when the requirements defining gov- erning insurance operations are satisfied. The appli- cation will be evaluated based on the merits of the management and the owners controlling 10% or more of the share capital or votes, or a holding stake that permits significant influence over the management of that undertaking (a qualifying holding), as well as the nature of the planned business and the amount of capital. In order for an authorisation to be granted, the applicant’s articles of association must be compliant with the IBA, and the proposed business must align with the relevant laws and regulations regarding the business of the applicant. In addition, the holder of a qualifying stake in an insurance undertaking must be judged to be appropriate to exercise a significant influence over the management of the undertaking, including meeting good-standing and capital-strength requirements. Lastly, the persons involved in the management of, or in charge of, key functions, must possess the knowledge and experience deemed to be sufficient, as well as being considered as fit and proper persons in this respect. An authorisation is in general valid indefinitely, but can be withdrawn if there is serious breach of legislation. Authorisation for a company to conduct insurance business means that it may carry out the activities set out in its articles of association. These must state which insurance classes apply for the businesses for
which the company intends to provide insurance. It is not a requirement to specify in the articles of asso- ciation whether the insurance business will target consumers, SMEs or corporates. From a regulatory perspective, there are no specific differences regard- ing the requirements for writing consumer, SME or commercial insurance in Sweden (for differences from an insurance contract perspective, please refer to 6. Making an Insurance Contract ). However, the author- isation from the Swedish FSA to conduct insurance business is specifically tied to the insurance class/es applied for in the granted authorisation, and therefore limits the type of insurance an insurance undertaking might offer. In terms of insurance distribution, there are certain exemptions from the requirements set out in the IDA in respect of large risks and reinsurance. Such exemp- tions correspond to the exemptions for large risks and reinsurance in the IDD. 2.3 Taxation of Premium Insurance premiums are generally not subject to taxation. However, exceptions apply to premiums for third-party liability motor insurance, which are taxable. Insurance premiums are excluded from VAT. 3. Overseas Firms Doing Business in the Jurisdiction 3.1 Overseas-Based Insurers or Reinsurers Foreign Insurance and Reinsurance Undertakings Authorised and Established Within the EEA A foreign insurer established and authorised within the EEA, and which is not a reinsurance undertaking, may carry out business on a cross-border basis in Sweden without applying for authorisation. However, before doing so, the undertaking must notify its home super- visory authority. Passive provision of such services in respect of risks situated in Sweden (ie, the provision of insurance services on the sole initiative of the client) would also require a prior notification. A foreign reinsurer authorised and established within the EEA may carry out reinsurance business in Swe- den from a branch or general agency, or write business
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