The Estonian Financial Supervision Authority issued a precept to Salva Kindlustuse AS requiring the insurer to address deficiencies identified in an on-site inspection, covering both its internal governance arrangements and the handling and compensation of claims. The inspection reviewed the organisation of the company’s management systems, delegation of activities and key functions, the operation of its suitability assessment for managers and other key function holders, and claims processes for motor third-party liability insurance, optional vehicle insurance, travel insurance and home insurance. Identified deficiencies included not consistently ensuring separation and independence of lines of defence at management board and unit level, as well as internal rules that did not meet requirements and were not always followed, alongside broader shortcomings in the organisation of the management system, delegation and key functions and in claims handling and compensation for the inspected product lines. The precept may be appealed to the Tallinn Administrative Court within 30 days of notification of the administrative decision.
Finantsinspektsioon 2025-03-25
Estonian Financial Supervision Authority issues a precept requiring Salva Kindlustuse to remedy governance and claims handling shortcomings
The Estonian Financial Supervision Authority issued a precept to Salva Kindlustuse AS to rectify deficiencies found in an inspection of its internal governance and claims handling processes. The inspection revealed issues with management systems, delegation, and claims processes across various insurance lines, including motor and travel insurance. Salva Kindlustuse AS can appeal the decision to the Tallinn Administrative Court within 30 days.