Latvia's Ministry of Finance said the Cabinet has approved amendments to the Insurance and Reinsurance Distribution Law that would streamline parts of the registration and supervision framework while strengthening customer protection in insurance distribution. The package would centralize the registration of insurance agents and ancillary insurance intermediaries in the Bank of Latvia's electronic system, reduce some documentation requirements for insurance and reinsurance brokers, and tighten rules on staff competence, conflicts of interest and product distribution transparency. The amendments were developed with the Bank of Latvia and the insurance sector, drawing on supervisory experience and issues identified through dialogue with the industry. Centralized registration is intended to give firms a single, transparent source of information on market participants and support more efficient supervision. The lighter registration requirements for brokers would cut the volume of documents and information that must be submitted, while conduct-related changes would raise professional standards for employees involved in distribution and improve the information available to customers when choosing insurance protection. Following Cabinet approval, the draft law will be submitted to the Saeima for consideration.

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