PORTUGAL Law and Practice Contributed by: João G Gil Figueira, Rodrigue Devillet Lima and Catarina Andrade Miranda, GFDL Advogados
Most fintechs in insurtech operate brokerage models where data collection is remitted to a regulated insurance company, which will then apply its internal risk analysis methodology depending on the type of policy requested by the client. Insurance intermediation is also regu - lated in Portugal, governed by Law No 7/2019 of 16 January. 8.2 Treatment of Different Types of Insurance In Portugal, there are several types of insurance, some mandatory by law or contract. As exam - ples of mandatory insurance in Portugal, one can point out the following:
ject to specific requirements, notably with regard to information duties. Legacy players tend to specialise in either life or non-life insurance policies. 9. Regtech 9.1 Regulation of Regtech Providers Regtech providers are not directly regulated as long as they do not render any service directly regulated as a subcontracted function or provide what could be considered reserved advice for some professions. With the rise of new fintech solutions leading to the development of new regulatory frameworks, the compliance cost for all players, whether new or legacy ones, has risen in recent years. In turn, fintechs have created new and ingenious ways to streamline procedures to comply with all the new impositions set by these new legislations and regulations. The category under which a potential regtech could theoretically be considered regulated needs to be assessed on a case-by-case basis, depending on the depth and level of “compli- ance activity” being developed. Assessing whether a particular solution is within the scope of a regulated sector or profession is not simple. For example, KYC services are strongly prone to being outsourced. In this case, the fintech solu - tion provider should be aware that this third-par - ty service provider could fall within the scope of the AML Act. Another issue that should be considered when developing a regtech project is to be aware that certain outputs can be construed as legal advice, which in some jurisdictions is illegal
• work hazard insurance; • service hazard insurance; • personal accident insurance; • assistance to third parties; • damage insurance; • sickness insurance; • fire hazard insurance; • bond/deposit insurance; • civil liability; • theft insurance; and • life insurance.
In some cases, the minimum coverage and con - ditions set by a type of insurance will be defined by ordinances issued by the ministerial depart - ment with jurisdiction over the sector in ques - tion. Authorised insurance companies can engage in insurance activities in both the life and non-life sectors but must adopt distinct management for each activity, ensuring that both sectors are kept separate. Distinct minimum capital requirements are set for direct insurers and reinsurers and for life and non-life policies. The promotion and sale of distinct types of insurance products are sub -
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