Government submits proposal to amend Act on Insurance Guarantees for Emergency Conditions 

The aim of insurance guarantees for emergency conditions is to ensure a sufficient insurance cover for transports that are essential to the livelihood of the population or the functioning of business and industry and the security of supply. The reason for updating the regulation is the changing security environment. 

The aim of insurance guarantees is to ensure a sufficient insurance cover for transports that are essential to the livelihood of the population or the functioning of business and industry and the security of supply. If, in view of the circumstances, no appropriate reinsurance is available on the market, the Government may grant central government guarantees for non-life insurance policies issued by insurance institutions. An insurance guarantee could be issued for a maximum of six months at a time and for a maximum amount of EUR 10 billion per calendar year.

The proposal aims to make the granting of insurance guarantees for emergency conditions as smooth as possible. Another aim is to harmonise the status of insurance guarantee applicants who are domiciled in different states. 

The operation of the Committee on Insurance Guarantees for Emergency Conditions would also be ensured in conditions where the chairpersons or members of the Committee would be prevented from attending to their duties. For this reason, the amended Act would include provisions on deputy members. The Government also wants to specify the duties and powers of different authorities involved in granting and managing insurance guarantees for emergency conditions. The duties of the Committee on Insurance Guarantees for Emergency Conditions would be changed so that, instead of the Committee, the State Treasury would manage insurance guarantees in future.  

Guarantees would not be granted to operators that are subject to sanctions.

Inquiries:

Noora Silmonen, Legal Adviser, [email protected]