Insurance Law EstoniaDr Olavi-Jüri Luik, attorney at law
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Estonian insurance law update: Q4 2025

By Dr Olavi-Jüri Luik, attorney at law (WIDEN) · 2025-12-31

Contents

This post summarises state-level developments in Estonian insurance law and supervision as at 31 December 2025, for insurers, brokers, MGAs and reinsurers active in Estonia. In short: no change to the substantive insurance contract rules, but three draft laws were launched that will shape 2026. Later developments are noted at the end.

Date note: the date of this post (31 December 2025) is the reference date of the update, not the date on which it was published here. The update was written for this website in 2026.

In force: close-out netting and supervisory precepts

On 21 November 2025 the Act amending the Securities Market Act and other acts (derivative and repo transactions) (RT I, 11.11.2025, 1), adopted on 15 October 2025, entered into force.

For insurers, the relevant change is a new § 95(2¹) of the Insurance Activities Act (kindlustustegevuse seadus, KindlTS). A prohibition or restriction imposed on an insurer by a precept of Finantsinspektsioon (the Estonian Financial Supervision and Resolution Authority, FI) does not prevent close-out netting under qualifying financial transactions within the meaning of § 229³ of the Securities Market Act (väärtpaberituru seadus, VPTS). Derivative and repo counterparties of an Estonian insurer are therefore protected even where the insurer is under supervisory intervention.

The same act amended security-interest provisions of the Law of Obligations Act (võlaõigusseadus, VÕS) (§§ 685 and 888). The insurance contract chapter (VÕS §§ 422 et seq.) was not affected.

Draft laws on the move

Distance marketing of financial services. On 13 October 2025 the Ministry of Justice and Digital Affairs circulated the draft Act amending the Law of Obligations Act and the Consumer Protection Act (EIS 25-1112; consultation deadline 3 November 2025). It transposes Directive (EU) 2023/2673 on financial services contracts concluded at a distance. Insurance is a financial service, so online and telephone sales of insurance to consumers are directly affected. The draft went to the Government on 16 December 2025.

Recovery and resolution of insurers. On 9 December 2025 the Ministry of Finance circulated the draft Insurers' Crisis Prevention and Resolution Act (EIS 25-1364; deadline 26 January 2026). It transposes the Insurance Recovery and Resolution Directive (EU) 2025/1 and the Solvency II review directive (EU) 2025/2, both of 27 November 2024. Expect pre-emptive recovery plans, early-intervention powers and more proportionate rules for small and non-complex undertakings.

Human Genes Research Act. On 3 November 2025 the Government introduced a new Human Genes Research Act (inimgeeniuuringute seadus), bill 749 SE, in the Riigikogu (Parliament). The first reading was completed on 16 December 2025. The bill is relevant to life and health underwriters because it governs the use of genetic data outside research and healthcare.

Finantsinspektsioon guidance

On 21 October 2025 FI amended its recommended guideline Requirements for the IT and information security arrangements of supervised entities (in Estonian). Insurers and insurance brokers are among the addressees. From the same date, FI's register of guidelines marks as no longer applicable the guidelines issued on the basis of the EIOPA ICT security and governance guidelines and the guidelines on outsourcing to cloud service providers.

By decision No 1.1-7/68 of 5 May 2025, FI issued, as recommended guidelines applicable from 30 December 2025, the EBA guidelines on internal policies, procedures and controls to implement Union and national restrictive measures (EBA/GL/2024/14 and EBA/GL/2024/15). They are addressed to credit, payment and e-money institutions and to payment and crypto-asset service providers; insurers are not named as addressees. An insurer's sanctions obligations derive from the International Sanctions Act (RSanS) and EU sanctions regulations, and the guidelines are a useful benchmark for documented internal rules. For foreign insurers writing Estonian risks, sanctions compliance should therefore be documented at the level of internal rules, not only at the claims stage.

Supreme Court: insolvency practitioner liability insurance

On 15 October 2025 the Civil Chamber of the Riigikohus (Supreme Court) gave judgment in case 2-21-16822/84 on the compulsory liability insurance of a bankruptcy trustee and the injured party's direct claim against the insurer (VÕS § 521(1)). The Chamber held that VÕS § 521(5) does not oblige the insurer to pay where there is no insured event at all. The insurer could rely on the policy term under which the trustee's intentional breach of duty was not an insured event, as § 64(2) of the Bankruptcy Act (pankrotiseadus, PankrS) allows, and the Chamber described the insurer's lack of an obligation where the insured event was caused intentionally as a general principle of insurance. The finding concerned the trustee's own intentional transfers of estate funds and the wording of that compulsory policy; its weight for other compulsory liability lines depends on the statute imposing the insurance obligation and on the policy terms.

Later note (3 November 2026)

  • The distance-marketing act (bill 796 SE) was adopted on 13 May 2026 and entered into force on 1 September 2026 (RT I, 27.05.2026, 2). See our post on withdrawal from distance insurance contracts.
  • The Human Genes Research Act was adopted on 25 February 2026 (RT I, 17.03.2026, 1). It inserted § 216¹ into KindlTS, banning insurers and intermediaries from requiring or collecting genetic data and from letting it affect premiums or benefits, in force 1 April 2026.
  • The recovery and resolution draft became bill 925 SE (introduced 21 May 2026). Its second reading was completed on 21 October 2026; the third reading is scheduled for 11 November 2026.

Sources

Topics: Supreme Court case law Liability insurance