SWEDEN Law and Practice Contributed by: Viveka Classon, Karin Rättzén and Sara Stålebring, Advokatfirman Vinge KB
Investigation on Recovery and Resolution of Insurance and Reinsurance Undertakings and the Solvency II Review In 2024, the Swedish Government initiated an inves- tigation into the implementation into Swedish law of EU directive (EU) 2025/1 establishing a framework for the recovery and resolution of insurance and rein- surance undertakings (IRRD) and EU directive (EU) 2025/2 (the Solvency II Review Directive) introducing targeted amendments to the Solvency II framework. The investigation was also tasked with conducting a review of the Swedish regulatory framework regarding administrative sanctions and the possibilities for issu- ing subordinated loans to strengthen the capital base. The enquiry report, “Crisis management and amended operating rules for insurance undertakings”, published in October 2025, proposed: • a new Act on the Resolution of Insurance Under- takings implementing the IRRD; • extensive amendments to the IBA implementing the Solvency II Review Directive; • expanded powers for the Swedish FSA to impose administrative sanction fees, as well as a higher maximum administrative sanction fee amounts for insurance and occupational pension undertakings; and • enhanced possibilities for insurance companies to issue subordinated loans. It is proposed that the amendments enter into force on 30 January 2027.
den, are working to align construction standards with insurance requirements, challenges persist for the existing building stock, making cross-border place- ment an important alternative for owners and develop- ers facing limited domestic options. 12. Developments in Insurance Law 12.1 Significant Legislative or Regulatory Developments Criminal Liability for Unlawful Financial Activities The Swedish Government has proposed new legisla- tion introducing criminal liability for unlawful financial activities, including conducting insurance business and insurance intermediation without required authori- sation or registration. As a result, it will be crucial for companies with operations that may be classified as insurance business or insurance distribution to conduct thorough due diligence before commencing operations in Sweden to avoid potential criminal liabil- ity for their representatives. It is possible to apply for an advanced ruling by the Swedish FSA as to whether an operation constitutes a regulated insurance busi- ness. The new legislation is proposed to enter into force on 1 March 2026 if passed by the Swedish Par- liament. Consumer Protection in Transfers of Occupational Pension Capital The market for transferring occupational pensions is increasingly lucrative, and the Swedish FSA has seen an increase in the transfer of occupational pension capital. According to the Swedish FSA, there are signs that the industry may be encouraging transfers for reasons other than ensuring that the insured person receives a better pension. In October 2025, the Swedish FSA initiated an in- depth analysis of four major life insurance companies to gain a deeper understanding of the risks associ- ated with transferring collectively agreed occupational pension plans. Further, in a report published in June 2025, the Swedish FSA emphasised the importance of insurance intermediary firms having procedures for identifying and managing conflicts of interest that could arise within their operations, in particular in rela- tion to transfers of insurance.
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