Hansa Varakindlustus violated the own-funds amount requirement
AS Hansa Varakindlustus violated the minimum own-funds requirement provided for in the Insurance Activities Act, according to which an insurer shall have equity in the amount and structure prescribed by the said act for ensuring performance of the obligations under insurance agreements.
During a regular inspection, the Financial Supervision Authority discovered that in February and March own funds of AS Hansa Varakindlustus had fallen under the required own-funds minimum. According to the Insurance Activities Act, the own-funds minimum of AS Hansa Varakindlustus shall at all times be at least 3.2 million Euros, as the insurer is, among other activities, also entitled to deal with motor third party liability insurance. As of the beginning of May 2007, AS Hansa Varakindlustus has fulfilled the own-funds minimum requirement.
On 25 September 2007, the Financial Supervision Authority decided to punish AS Hansa Varakindlustus with a fine of EEK 20 000. The Insurance Activities Act provides that the limit of fines for violating own-funds requirements is EEK 50 000.