LKS Consult – Practice areas – Financial Licenses in Estonia – Insurance License in Estonia

Insurance License in Estonia

Insurance companies compensate losses and pay out the compensation in the case of an insured event. Such companies take the risks of the insured party following the insurance agreement. A business must obtain a license to operate as an insurance company. The Estonian Financial Supervision Authority considers candidates (EFSA) and issues the corresponding permit.

Time frame

The decision by EFSA is usually made within six months since the submission of the documents.


As the EFSA requires, the following information has to be presented while applying for the license:

  • A copy of the statutes for a business that is operating, any decision by the general meeting to amend the laws, and the amended text of the statutes.
  • A notarised copy of the foundation contract or decision for a business being founded and confirmation from a credit institution that share capital has been paid in.
  • Documentation certifying the value of own funds for a business that is already operating, together with the auditor’s report.
  • The initial balance of the applicant and a review of its revenues and expenses, and its most recent balance and profit report and annual reports for the past three years if they exist.
  • An operating plan that meets the requirements of the Insurance Activities Act.
  • The standard conditions for the insurance contract if the application is for a licence for mandatory insurance.
  • Information on the members of the management board and supervisory board, including their first and family names, personal ID codes or date of birth if they have no ID code, place of residence, description of education, a complete list of jobs and positions held, and for members of the management board a list of their areas of responsibility, together with any documentation that the applicant considers relevant for demonstrating their trustworthiness and compliance with the requirements of the Insurance Activities Act.
  • Information on the auditor of the applicant, covering the actuary and the person responsible for internal controls, giving their names and personal ID codes, or date of birth or registry code if there is no ID code.
  • A list of the shareholders of the applicant showing the name of each shareholder or member, their registry code or ID code, or date of birth if they have none, and details on the share or equity holdings of each shareholder and the voting weight given to them.
  • The data required by the Insurance Activities Act for people who will hold a significant share of the applicant.
  • Data on any business that the applicant or its management or supervisory board members holds more than 20% of, where those data include the size of its equity, a list of its areas of activity, and the size of the holding of the applicant and each manager or supervisory board member.
  • The planned organisational structure of the applicant.
  • The internal rules of the insurance company, or proposals for them, following the Insurance Activities Act.
  • The name and address of the claims handler in each EEA state for an applicant under the Motor Insurance Act if the application is for activities with motor insurance.

Cross-border service

Any insurance company registered in a European Union member state that wants to provide cross-border insurance services in Estonia must comply with the requirements of the Insurance Activities Act and the Motor Insurance Act and any other legislation derived from them such as regulations issued by the government, the Ministry of Finance and the Ministry of Social Affairs, and the guidelines of EFSA.

Professionals of LKS Consult OÜ will be happy to consult your company regarding insurance license and assist you in obtaining the license.



Managing Associate

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