Finantsinspektsioon carries out supervision over insurers and insurance intermediaries that operate under a licence that it has issued. There were two life insurers and seven non-life insurers operating in the Estonian market with a licence from Finantsinspektsioon at the end of 2025. There were also seven foreign non-life insurers and three branches of foreign life insurers operating in Estonia.
There were 38 insurance brokers listed on the Finantsinspektsioon list of insurance intermediaries at the end of the year. There were also branches of five foreign insurance brokers operating in Estonia.
Finantsinspektsioon assessed compliance with the requirements for designing insurance products
Finantsinspektsioon focused its supervision on whether the design of insurance products complied with the requirements. It looked at whether distributors were given sufficient and relevant information when new products were developed and existing products significantly altered, and whether the development process for products met all the requirements for it. Finantsinspektsioon drew attention to individual cases where the distributors were given information that was not relevant.
Finantsinspektsioon inspected how losses were handled and insurance compensation explained
Finantsinspektsioon looked at how non-life insurers handle and compensate losses and how they explain insurance compensation to clients. The existence of internal rules, the application of them, and their alignment with legal standards was checked. Finantsinspektsioon identified shortcomings in how losses were handled and directed the insurers to extend their internal rules and ensure that they followed them. Finantsinspektsioon monitored whether insurers followed the action plans they had submitted.
Finantsinspektsioon worked with international partners in insurance
Finantsinspektsioon contributed to pan-European analysis of the experience and expectations of consumers for the availability and extent of insurance coverage against natural disasters in home insurance policies. It also participated together with insurers in the collection of data by the European Insurance and Occupational Pensions Authority (EIOPA), which was used for a report on the costs and past returns of European life insurance products. The report emphasised the need for continuing efforts to ensure the best ratio of price and quality for consumers. It gives a review of the main trends in the insurance market in the European Union and is an input for the supervision work of Finantsinspektsioon and for the everyday work of insurers.
Finantsinspektsioon assessed the risks of insurers more methodically than before
Finantsinspektsioon used to produce an annual risk assessment on all of the insurers, but a new approach was introduced in 2025 as smaller insurers with lower risk levels will now be assessed every two years. This is in line with the principle that Finantsinspektsioon follows of risk-based supervision. The assessments of insurance companies cover their business model and strategy, their financial and risk position, governance, and other issues. Feedback was given to every insurer that a risk assessment was made for, and the results of the risk assessment are an important input for planning supervision work.
The focus fell on capital risks in life insurance and on risks from climate change in non-life insurance
Finantsinspektsioon had separate inspection projects for life and non-life insurers. The inspection of life insurers looked at how reliably risks were considered and mitigated, while that for non-life insurers looked at how they account for the risks from climate change. This inspection analysed how ready the insurers are to meet new requirements, and where necessary it gave recommendations for improvements they could make.
On-site inspection focused on assessing the management systems of insurers
Finantsinspektsioon completed an on-site inspection of insurers established in Estonia that was started in 2024. It looked at the management systems of the insurers, including their risk management and the organisation of key functions, the organisation of the transfer of activities, and the suitability within the operation of the assessment system of managers and the people responsible for key functions. Attention was also focused on the correctness of reporting and disclosure, how damages under optional vehicle insurance and motor third-party liability insurance are handled and compensated, and how insurance compensation is explained when travel and health insurance contracts are signed. Finantsinspektsioon found shortcomings and points that needed improvement in all of the areas inspected. The insurers drew up action plans for how to remedy the shortcomings identified by the inspections, and Finantsinspektsioon continues to monitor how those plans are fulfilled.
