General Good for providers of cross-border insurance mediation services

In accordance with Article 6 of the Financial Supervision Authority Act (in Estonian: Finantsinspektsiooni seadus), Article 209 of the Insurance Activities Act, and Article 11 of the Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution, we hereby advise you of the rules on the provision of cross-border insurance mediation services in Estonia as well as of the conditions that are stated in Estonia in the interest of general good in order to safeguard the compliance of the activities and services to be provided in Estonia with the relevant requirements and for conducting financial supervision.

An insurance intermediary from an EU Member State exercising the freedom to provide cross-border services by carrying on its activities in Estonia has to adhere thereat to the Insurance Activities Act (hereinafter referred to as IAA; in Estonian: kindlustustegevuse seadus), Motor Third Party Liability Insurance Act (hereinafter referred to as: MTPLIA; in Estonian: liikluskindlustuse seadus) and other legislation - Decrees of the Government of the Republic, Decrees of the Minister of Finance, a Decree of the Minister of Social Affairs - issued on the basis of the IAA and MTPLIA on the provision of services permissible for insurers and as well as the relevant EFSA guidelines.

When providing insurance mediation services the rules of contract law and principles of consumer protection, regulated in the Law on Obligations Act (in Estonian: võlaõigusseadus) and Consumer Protection Act (in Estonian: tarbijakaitseseadus), have to be followed, stating inter alia that if insurance is marketed in Estonia to consumers or traders comparable to consumers, the insurance terms and conditions as well as other information given to the applicant and policyholder about the insurance must be provided in the applicant's or policyholder's native language if it is Estonian. The complaints of customers can be treated by the Consumer Protection Board as well as by EFSA.

With regard to the prevention of money laundering and terrorist financing, the insurance intermediary when exercising the freedom to provide cross-border services in Estonia has to follow the Money Laundering and Terrorist Financing Prevention Act (hereinafter referred to as: MLTFPA; in Estonian: rahapesu ja terrorismi rahastamise tõkestamise seadus), other legislation issued on the basis of MLTFPA and EFSA guidelines.

Apart from that, we would like to note that the insurance intermediary exercising the freedom to provide cross-border services in Estonia has to follow other requirements that have not been referred above, but are provided for in the Estonian legislation applicable to the providers of insurance mediation services in Estonia. The Estonian legal acts are available both in the Estonian and in the English language on the website www.riigiteataja.ee. The guidelines of the EFSA are available on the website of the EFSA www.fi.ee .

With regard to financial supervision over the natural and legal persons exercising the freedom to provide cross-border insurance mediation services, on the basis of Article 5 of the Directive (EU) 2016/97, EFSA is entitled to demand the termination of the violating acts or legal acts based on them. In case the demands of EFSA will be denied, EFSA shall inform the competent authority of the home country of the institution exercising the freedom to provide cross-border services. If the measures taken by the competent authority of the home country of the institution deem to be insufficient to terminate the violation, EFSA is entitled to apply measures provided for in legislation in order to terminate the violations and forbid further exercise of the freedom to provide cross-border services.