Insurance activities are the acceptance of the risks of a policyholder or insured person by the insurance undertaking on the basis of an insurance contract with the objective to pay indemnities upon occurrence of an insured event. An insurance undertaking is a company whose main permanent activity is the compensation for damage created upon and as a result of insured events, or payment of agreed sums of money.
The main classes of insurance are non-life insurance and life insurance. Non-life and life insurance contracts are entered into for the purposes of managing risks, also for the purposes of collecting savings.
To engage in insurance, companies must have a corresponding authorisation issued by the Financial Supervision Authority.