Insurance Law EstoniaDr Olavi-Jüri Luik, attorney at law
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Estonian insurance law update: Q3 2026

By Dr Olavi-Jüri Luik, attorney at law (WIDEN) · 2026-09-30

Contents

This post describes the position as at 30 September 2026. In Q3 the new distance-marketing rules took effect, the broker agents bill reached Parliament, and Finantsinspektsioon (the Estonian Financial Supervision and Resolution Authority, FI) explained when a service package becomes insurance.

Date note: the date of this post (30 September 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.

In force

21 July 2026: the Act amending the Credit Institutions Act and other acts (RT I, 11.07.2026, 7). The Insurance Activities Act (kindlustustegevuse seadus, KindlTS) now requires, where applicable, a foreign investment permit decision with an application for an insurer merger permit (§ 143(1)(8)) and sanctions breaches of the merger rules (§ 255²). The current consolidated KindlTS is RT I, 11.07.2026, 140.

1 September 2026: the amendments to the Law of Obligations Act (võlaõigusseadus, VÕS) and the Consumer Protection Act (tarbijakaitseseadus, TKS) (RT I, 27.05.2026, 2) transposing Directive (EU) 2023/2673. Insurance sold to consumers online or by telephone is now subject to the new information and explanation duties, the right to human intervention, the withdrawal button and the new wording of VÕS § 433. See our detailed post.

Broker agents bill in Parliament (993 SE)

The Ministry of Finance submitted the draft Act amending the Insurance Activities Act and the Law of Obligations Act (EIS 26-0305) to the Government on 12 August 2026. The Government introduced it in the Riigikogu (Parliament) on 14 September 2026 as bill 993 SE; the lead committee is the Finance Committee. The first reading was completed on 28 September 2026, and the deadline for amendments is 12 October 2026.

Compared with the spring version, VÕS amendments were added to the bill: the definition of insurable interest would move to the general part of the insurance contract chapter (proposed § 424¹; § 478(1) to be repealed), and where a contract is concluded through an intermediary, the intermediary would be responsible for making the policy available (proposed § 434(1¹), not in force). Until the bill is passed, the current VÕS § 434(1) applies unchanged. See our news post on the bill.

Finantsinspektsioon: when is a service insurance?

On 12 August 2026 FI published letter No 4.11-3.5/5717, Explanations for qualifying insurance activity (in Estonian). It responds to a joint request from the Estonian Insurance Association (EKsL) and the Estonian Insurance Brokers Association (EKML), which noted that more and more services with risk-transfer features are offered outside financial supervision.

According to FI, insurance activity (KindlTS § 2(1); VÕS §§ 422 and 423) is characterised by:

  1. payment of a premium;
  2. independent assumption of the client's risk and bearing its economic consequences, the occurrence of the risk being uncertain;
  3. an obligation to indemnify the loss or render another indemnity-oriented performance.

A service contract, by contrast, is one where the provider itself delivers the agreed service and bears only the risk of higher or lower usage. FI's example: a healthcare subscription for EUR 30 a month (unlimited GP visits, telephone consultations, certain tests) is a service, whereas a product reimbursing medical costs for the same monthly amount is insurance. The assessment is case by case, and the provider itself is primarily responsible for checking whether it needs a licence.

For foreign MGAs, assistance companies and platforms structuring subscription, warranty or assistance products for the Estonian market, the letter is the most concrete statement so far of where FI draws the line.

FI strategy

In summer 2026 FI published its strategy for 2026-2029 (in Estonian), focusing on the resilience of significant financial institutions and the protection of consumers and investors.

Recovery and resolution bill

Bill 925 SE (Insurer Crisis Prevention and Resolution Act) was awaiting its second reading at the end of the quarter.

Supreme Court

To our knowledge the Supreme Court issued no new insurance contract law rulings in Q3.

Later note (3 November 2026)

  • The Estonian Insurance Brokers Association (14 October 2026) and the Estonian Insurance Association (16 October 2026) submitted opinions on bill 993 SE to the Finance Committee. The bill awaits its second reading.
  • Bill 925 SE: second reading completed 21 October 2026; third reading scheduled for 11 November 2026.

Sources

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