Insurance Law EstoniaDr Olavi-Jüri Luik, attorney at law
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Estonian insurance law update: Q1 2026

By Dr Olavi-Jüri Luik, attorney at law (WIDEN) · 2026-03-31

Contents

This post describes the position as at 31 March 2026. The headline for distributors is a Ministry of Finance draft allowing insurance brokers to work through agents. In addition, a new genetic-data rule for insurers was published, and the Supreme Court clarified how maintenance conditions in motor own-damage (casco) policies operate.

Date note: the date of this post (31 March 2026) 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.

Draft amendment of the Insurance Activities Act: broker agents

On 10 March 2026 the Ministry of Finance circulated the draft Act amending the Insurance Activities Act (kindlustustegevuse seadus, KindlTS) (EIS 26-0305) for inter-ministerial consultation, with a deadline of 31 March 2026.

Two main ideas:

  1. Broker agents (maakleri esindaja). Article 3 of the Insurance Distribution Directive (EU) 2016/97 (IDD) allows Member States to let an intermediary act under the responsibility of another intermediary. Estonia did not use this option in 2017: only insurers may appoint agents. The draft would let a broker appoint representatives whose main business is not insurance distribution (car dealers, leasing companies, travel agencies) but who recommend contracts on the basis of an independent analysis. The broker would be liable for them.
  2. Permanent cross-border activity without a branch. An insurer from another EEA state could operate permanently in Estonia without establishing a branch, but its permanent presence would be subject to the supervisory rules applicable to branches.

The draft also proposed to cut administrative burden, for instance by abolishing the broker's duty to publish its annual report on its website.

The Estonian Insurance Brokers Association (EKML) publicly supported the draft on 31 March 2026, citing better access to insurance and easier price comparison.

Published: genetic data in underwriting

On 25 February 2026 the Riigikogu adopted a new Human Genes Research Act (inimgeeniuuringute seadus) (RT I, 17.03.2026, 1). It inserts § 216¹ into KindlTS, in force from 1 April 2026. Insurers may not require a tissue sample or data on DNA structure, hereditary risks or genetic characteristics from an insured person or a person whose risk is to be insured, nor collect such data. Genetic characteristics may not affect premiums or benefits. The rule also applies to intermediaries.

Life, health and accident underwriters should review proposal forms and underwriting manuals before 1 April 2026.

Distance-marketing bill in Parliament

On 19 January 2026 the Government introduced bill 796 SE amending the Law of Obligations Act (võlaõigusseadus, VÕS) and the Consumer Protection Act (tarbijakaitseseadus, TKS), transposing Directive (EU) 2023/2673. The first reading was completed on 10 March 2026. Online and telephone sales of insurance are directly affected: pre-contractual information, withdrawal rights and a withdrawal function in online interfaces.

Recovery and resolution draft: second round

The first consultation round on the draft Insurers' Crisis Prevention and Resolution Act (EIS 25-1364) closed on 26 January 2026. A revised draft was circulated on 25 March 2026, with a deadline of 22 April 2026.

Supreme Court: maintenance conditions are obligations, not exclusions

On 25 March 2026 the Civil Chamber of the Riigikohus gave judgment in case 2-23-10549/35. The casco conditions at issue covered a car first registered abroad only if its technical condition had been confirmed by the brand's dealer or an insurer-approved firm and the car had been serviced as the manufacturer required. The Court agreed with the circuit court that these conditions regulate a policyholder obligation (a duty of care, or precautionary measure), not a risk exclusion, because their fulfilment depends on the policyholder's conduct. Under VÕS § 445(2) and § 452(2)(2) the insurer is released only to the extent that the breach increased the probability of the insured event, so a breach primarily justifies a reduction and does not lead to release automatically. The insurer must prove the breach and its causal link to an increase in the insured risk; where it relies on increased risk, it must be able to show what caused the specific damage (in that case, the engine failure), and the policyholder must allow, for example, an expert to dismantle the failed engine. The Court set aside the circuit court's judgment and sent the case back for a new hearing, so the outcome on the facts is still open. The ruling follows the judgment of 28 June 2024 in case 2-22-2313/65. Foreign insurers using London-market or home-state wordings should not expect "condition precedent" drafting to produce an all-or-nothing result under Estonian law.

On 4 March 2026 the Chamber also ruled in case 2-24-6606/51 on the limitation of a claim that had passed to an insurer by subrogation in a dispute between apartment owners: the limitation period for a claim arising from a transaction runs from the time the claim falls due (General Part of the Civil Code Act (tsiviilseadustiku üldosa seadus, TsÜS) § 147), not from knowledge.

Later note (3 November 2026)

  • The KindlTS draft was extended to the Law of Obligations Act and introduced in the Riigikogu on 14 September 2026 as bill 993 SE; first reading completed 28 September 2026. See our news post on the bill.
  • Bill 796 SE was adopted on 13 May 2026 and entered into force on 1 September 2026 (RT I, 27.05.2026, 2).
  • KindlTS § 216¹ entered into force on 1 April 2026.

Sources

Topics: Insurance Activities Act Supreme Court case law Insurance broker and agent