{"id":139906,"date":"2026-04-22T08:56:13","date_gmt":"2026-04-22T08:56:13","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=139906"},"modified":"2026-04-22T08:56:13","modified_gmt":"2026-04-22T08:56:13","slug":"portugal-insurance-reinsurance","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/portugal-insurance-reinsurance\/","title":{"rendered":"Portugal: Insurance &amp; Reinsurance"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-139906","comparative_guide","type-comparative_guide","status-publish","hentry","guides-insurance-reinsurance","jurisdictions-portugal"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Broseta Abogados, SLP \u2013 Sucursal em Portugal<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/04\/Logo-broseta-300x84-1.png\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Broseta Abogados, SLP \u2013 Sucursal em Portugal<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/04\/Logo-broseta-300x84-1.png\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Insurance &amp; Reinsurance laws and regulations applicable in Portugal<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the writing of insurance contracts regulated in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The writing of insurance contracts is a regulated activity in Portugal exclusively reserved to licensed entities and subject to the supervision of the Portuguese insurance regulator, <em>Autoridade de Supervis\u00e3o de Seguros e Fundos de Pens\u00f5es<\/em> (\u201cASF\u201d). The main sources of insurance law are the following:<\/p>\n<ul>\n<li>Insurance and Reinsurance Activity Law (\u201cInsurance Activity Law\u201d), approved by Law no. 147\/2015 of 9\/9\/2015, which transposed into Portuguese legal order Directive 2009\/138\/EC of the Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of insurance and reinsurance (Solvency II Directive). Insurance Activity Law establishes the conditions for taking up and pursuing insurance and reinsurance business in Portugal; and<\/li>\n<li>Insurance Contract Law, approved by Decree-Law no. 72\/2008 of 16\/4\/2008, which establishes general rules applicable to all types of insurance contracts, namely in what concerns pre-contractual and contractual information, obligations of the parties throughout the term of the insurance contract, payment of insurance premium and claims handling.<\/li>\n<\/ul>\n<p>The referred to laws are supplemented by other several diplomas, such as the Standard Contractual Clauses Law, approved by Decree-Law no. 446\/85 of 25\/10\/1985 and special legislation such as PRIIPs national Law, approved by Law no. 35\/2018 of 20\/7\/2018, as well as by ASF\u2019s regulations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are types of insurers regulated differently (i.e. life companies, reinsurers?)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Apart from specific rules applying to insurers and reinsurers by virtue of their own nature (namely, in terms of corporate purpose, share capital, market conduct and reporting to ASF), insurers and reinsurers are subject to the same legal provisions regarding the taking-up and pursuit of the business under Insurance Activity Law and both subject to ASF\u2019s supervision.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are insurance brokers and other types of market intermediary subject to regulation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Insurance distribution activity is also a regulated activity in Portugal reserved to licensed entities and subject to prior authorisation from ASF (unless the activities in question fall under an exemption pursuant to law).<\/p>\n<p>The rules for taking up and pursuing insurance distribution are laid down in Insurance Distribution Law, approved by Law no. 7\/2019 of 16\/1\/2019, which transposed into Portuguese legal order Directive 2016\/97\/EU of the Parliament and of the Council of 20 January 2016 on insurance distribution.<\/p>\n<p>Insurance Distribution Law provides for the following types of Portuguese-based insurance intermediaries:<\/p>\n<ul>\n<li>Ancillary insurance intermediaries;<\/li>\n<li>Insurance agents; and<\/li>\n<li>Insurance brokers.<\/li>\n<\/ul>\n<p>Ancillary insurance intermediaries and agents act for and on behalf of one or more insurers (or insurance intermediaries) pursuant to a distribution agreement executed between the parties, whereas brokers act on behalf of customers and independently from insurers, being subject to portfolio diversification.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is authorisation or a licence required and if so how long does it take on average to obtain such  permission? What are the key criteria for authorisation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The taking-up of business by Portuguese-based insurers and reinsurers is subject to prior authorisation from ASF.<\/p>\n<p>ASF shall grant authorisation within 6 months after receiving the application from the undertaking concerned or, where applicable, after receiving any additional information from the applicant (however, up to 12 months from the date the application was initially filed).<\/p>\n<p>The key criteria for authorisation of Portuguese-based insurers and reinsurers are as follows:<\/p>\n<p>&#8211; Compliance with formal requirements in terms of legal form, corporate purpose, share capital and head office;<\/p>\n<p>&#8211; Compliance with fit&amp;proper requirements;<\/p>\n<p>&#8211; Qualifying shareholders must demonstrate their ability to ensure the undertaking\u2019s sound and prudent management;<\/p>\n<p>&#8211; Submission of a scheme of operations under the applicable legal terms;<\/p>\n<p>&#8211; Holding the eligible basic own funds to cover the absolute floor of the minimum capital requirement;<\/p>\n<p>&#8211; Evidence that the undertaking will be in a position to hold eligible own funds to cover the solvency capital requirement and eligible basic own funds to cover the minimum capital requirement;<\/p>\n<p>&#8211; Evidence that the undertaking will be in a position to comply with a system of governance under the applicable legal terms;<\/p>\n<p>&#8211; In the event there are close links between the undertaking and other persons, said links must not prevent ASF from carrying on or enforcing its supervision powers;<\/p>\n<p>&#8211; In the event the undertaking intends to cover direct risks regarding motor vehicle liability, other than carrier\u2019s liability, a claims representative must be appointed.<\/p>\n<p>In what regards other EU Member State-based insurers and reinsurers, the license granted in their home Member State allows them to pursue activity in Portugal through a branch or under freedom of services (\u201cFoS\u201d) in accordance with the EU passport, provided they notify the authorities of their home member State of such intention and comply with certain conditions considered of general good determined by ASF.<\/p>\n<p>As for undertakings with head office outside the EEA, the taking-up and pursuit of insurance and reinsurance business in Portugal shall require the establishment of a branch and prior authorisation from ASF, provided the undertaking complies with the criteria laid down under Insurance Activity Law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there restrictions or controls over who owns or controls insurers (including restrictions on  foreign ownership)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Any person who intends either to acquire, directly or indirectly, a qualifying holding in an insurer or reinsurer, or to further increase such qualifying holding as a result of which the proportion of the voting rights or of the capital held would reach or exceed the thresholds of 20%, 1\/3 or 50%, or the company concerned becomes its subsidiary, must prior notify ASF of said acquisition project. Notification also applies when the qualifying holding is below the mentioned thresholds, but the acquisition is likely to enable the acquirer to exercise a significant influence over the management of the company. ASF may oppose to the acquisition project if the acquirer fails to guarantee a sound and prudent management of the company.<\/p>\n<p>The reduction\/disposal of a qualifying holding to a stake below the above-mentioned thresholds is likewise subject to prior notification to ASF.<\/p>\n<p>In what regards foreign ownership\/investment, there are no restrictions provided the provisions laid down in Insurance Activity Law are complied with.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to insure or reinsure risks in your jurisdiction without a licence or authorisation?  (i.e. on a non-admitted basis)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As a rule, it is not possible to insure or reinsure risks in Portugal without a license granted by ASF (in the case of Portuguese-based undertakings and third countries undertakings) or by a supervisory authority from another Member State (in the case of EU undertakings that intent to act in Portugal through a branch or under FoS).<\/p>\n<p>Undertakings from third countries that carry on reinsurance business in Portugal without a branch, however, may benefit from an authorisation exemption provided that the European Commission decided that the solvency regime in that third country is equivalent to that laid down in Solvency II Directive.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is a branch of an overseas insurer, insurance broker and\/or other types of market intermediary in  your jurisdiction subject to a similar regulatory framework as a locally incorporated entity?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>EU-based insurers and intermediaries acting in Portugal under the EU passport through a branch or under FoS are subject to a lighter regulatory framework than Portuguese-based entities. Once granted in their Member State, their license allows them to conduct business in Portugal, provided they notified their home Member State authorities for such purpose and comply with the general good provisions determined by ASF.<\/p>\n<p>As for third countries\u2019 (non-EEA) insurers and intermediaries, the taking-up and pursuit of the business requires the establishment of a branch and prior authorization from ASF. The regulatory framework applicable to non-EEA undertakings is similar to that applicable to Portuguese-based entities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions\/substance limitations on branches established by overseas insurers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Without prejudice to section 7, branches established in Portugal shall be subject to the restrictions\/ limitations set out in their parent company national legislation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What penalty is available for those who operate in your jurisdiction without appropriate  permission?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Pursuing insurance activities or operations without proper license or in contravention with Insurance Activity Law is punishable with up to 5 years imprisonment or a fine up to \u20ac5.000.000.<\/p>\n<p>In what regards insurance distribution business, the pursuit of activity without proper license is punishable with a fine up to \u20ac5.000.000.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How rigorous is the supervisory and enforcement environment? What are the key areas of  its focus?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>ASF is very active in ensuring the proper functioning of the insurance market, making regular on-site and off-site audits to the entities under its supervision in order to check compliance with legal and regulatory framework. The key areas of ASF\u2019s focus are the undertakings\u2019 soundness and consumers protection. Besides regulation, ASF frequently issues recommendations to the supervised entities on specific matters.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the solvency of insurers (and reinsurers where relevant) supervised?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Portuguese-based insurers and reinsurers are subject to Solvency II Directive requirements, which were transposed into Insurance Activity Law.<\/p>\n<p>ASF\u2019s mission is to ensure the proper functioning of the insurance market, by promoting the stability and financial soundness of the entities under its supervision, aiming to protect policyholders, insureds, subscribers, beneficiaries and any interested parties.<\/p>\n<p>In order to ensure the aforesaid, ASF\u2019s supervision encompasses powers to verify the undertakings\u2019 solvency status, establishment of technical provisions, assets and eligible own funds, accounting, governance system, market conduct and insurers\u2019 groups, in accordance with the legal and regulatory provisions in force at all times.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the minimum capital requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The minimum capital requirement corresponds to an amount of eligible basic own funds below which policyholders and beneficiaries are exposed to an unacceptable level of risk. The absolute floor of the minimum capital requirement is as follows, under EU legislation:<\/p>\n<p>i) EUR2.700.000 for non-life insurance undertakings, including captive insurance undertakings, save in the case where all or some of the risks included in one or some of the Non-life classes 10 to 15 are covered, in which case it shall be no less than EUR4.000.000;<\/p>\n<p>ii) EUR4.000.000 for life insurance undertakings, including captive insurance undertakings;<\/p>\n<p>iii) EUR3.900.000 for reinsurance undertakings, except in the case of captive reinsurance undertakings, in which case shall be no less than EUR1.300.000;<\/p>\n<p>iv) The sum of the amounts set out in paragraphs (i) and (ii) for insurance undertakings authorised to pursue simultaneously both life and non-life insurance activities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a policyholder protection scheme in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Where a Portuguese-based insurer is wound up, the assets held by the company representing mathematical provisions are subject to a credit privilege in favour of the policyholders, insureds and beneficiaries.<\/p>\n<p>Furthermore, insurers pursuing certain classes of non-life insurance (such as motor vehicle insurance and work accidents) are required to join and participate in national guarantee schemes (this obligation applies likewise to insurers acting in Portugal through a branch and under FoS).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are groups supervised if at all?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Undertakings which are part of a group are subject to ASF\u2019s supervision under the applicable legal terms. Portuguese law incorporates Solvency II Directive\u2019s rules regarding group supervision.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do senior managers have to meet fit and proper requirements and\/or be approved?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As regards Portuguese-based insurers, the following persons are subject to fit (professional qualification \/ experience) and proper (good repute) requirements and prior authorization from ASF before their designation by the undertaking:<\/p>\n<ul>\n<li>Members of the management body and any persons who effectively run the undertaking;<\/li>\n<li>Members of the supervisory body and statutory auditor;<\/li>\n<li>Senior managers and persons responsible for key-functions.<\/li>\n<\/ul>\n<p>In what regards Portuguese-based intermediaries, fit and proper requirements apply to the staff selling insurances and to the member(s) of the management body responsible for insurance distribution activities (the other members of the management body are only subject to proper requirements).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent might senior managers be held personally liable for regulatory breaches in  your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The undertaking shall be liable for any offences committed by its management or supervisory bodies, senior managers, persons responsible for key-functions, employees or any persons representing the undertaking and acting on behalf and for the account of the undertaking within the scope of powers granted by the latter. The undertaking\u2019s liability shall be excluded, however, in the event the perpetrator acted against express orders from the undertaking.<\/p>\n<p>The undertaking\u2019s liability shall not exempt the above-mentioned persons from personal liability where applicable in accordance with the relevant legal provisions. Particularly, the members of the management or supervisory bodies of the undertaking can be held personally liable whenever they were aware of or should be aware of the offence and did not take suitable measures to put an end to the breach.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there minimum presence requirements in order to undertake insurance activities in  your jurisdiction (and obtain and maintain relevant licenses and authorisations)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Portuguese-based insurers and reinsurers must have its head-office in Portugal and comply with minimum share capital as follows:<\/p>\n<ul>\n<li>EUR2.500.000 in the event the insurer conducts business in sickness, legal expenses or assistance;<\/li>\n<li>EUR7.500.000 in the event the insurer conducts business in more than one of the classes referred to in the preceding bullet or in any other class or classes of non-life insurance;<\/li>\n<li>EUR7.500.000 in the event the insurer conducts life insurance business;<\/li>\n<li>EU15.000.000 in the event the insurer conducts business simultaneously in life insurance and one or more classes of non-life insurance;<\/li>\n<li>EUR 7.500.000 in the event the reinsurer conducts non-life reinsurance or life reinsurance business; and EUR15.000.000 in the event the reinsurer conducts both.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there restrictions on outsourcing services, third party risk management and\/or  operational resilience requirements relating to the business?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Outsourcing of critical or important operational functions is not allowed in the event it leads to any of the following:<\/p>\n<ul>\n<li>Materially impairing the quality of the governance system of the insurer concerned;<\/li>\n<li>Unduly increasing of operational risk;<\/li>\n<li>Impairing the ability of ASF to monitor compliance of the insurer with its obligations;<\/li>\n<li>Undermining continuous and satisfactory service to policyholders, insureds and beneficiaries.<\/li>\n<\/ul>\n<p>Insurers and reinsurers must notify ASF prior to outsourcing critical or important functions, including any subsequent significant changes affecting said functions.<\/p>\n<p>Nevertheless, insurers and reinsurers should always ensure the following when outsourcing:<\/p>\n<ul>\n<li>The provider collaborates with ASF;<\/li>\n<li>The undertaking and ASF have access to information\/data related to the outsourced tasks; and<\/li>\n<li>ASF has access to the premises of such providers, namely for audit purposes.<\/li>\n<\/ul>\n<p>Additionally, insurers and reinsurers are subject to the Digital Operational Resilience Act (DORA) \u2013 Regulation (EU) 2022\/2554 of the European Parliament and of the Council of 14 December 2022 \u2013, directly applicable into Portuguese legal order, and also to ASF guidelines on this matter.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there restrictions on the types of assets which insurers or reinsurers can invest in or  capital requirements which may influence the type of investments held?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Except for retirement and educational savings schemes (PPR \u2013 Planos Poupan\u00e7a-Reforma and PPE \u2013 Planos Poupan\u00e7a-Educa\u00e7\u00e3o), Portuguese law does not impose restrictions regarding the type and location of the assets, provided Solvency II Directive\u2019s \u00abprudent person principle\u00bb is complied with and insurers invest in the best interest of policyholders and beneficiaries.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there requirements or regulatory expectations regarding the management of an insurer's reinsurance risk, including any restrictions on the level \/ type of reinsurance utilised?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Portuguese-based insurers may resort to reinsurance or to alternative risk transfer transactions for the purposes of risk mitigation in the context of their risk-management and internal control systems. In said case, insurers must have in place a reinsurance policy in accordance with ASF\u2019s regulatory provisions on this matter.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are sales of insurance supervised or controlled?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>ASF makes frequent on-site and off-site audits to insurers and insurance distributors under its supervision. In addition, these entities are subject to periodic reporting obligations regarding their activities, including those acting in Portugal under FoS or through a branch.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent is it possible to actively market the sale of insurance into your jurisdiction  on a cross border basis and are there specific or additional rules pertaining to distance selling or  online sales of insurance?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The sale of insurance into Portuguese jurisdiction on a cross-border basis regarding EU-based insurance undertakings depends on notification to ASF under the EU passport framework and compliance with the general good provisions determined by ASF.<\/p>\n<p>As for third countries\u2019 (non-EEA) undertakings, the sale of insurance requires the establishment of a branch and prior authorization from ASF.<\/p>\n<p>Distance selling and online selling are subject to specific legislation on distance contracts and e-commerce.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are insurers in your jurisdiction subject to additional requirements or duties in respect of  consumers? Are consumer policies subject to restrictions, including any pricing restrictions? If  so briefly describe the range of protections offered to consumer policyholders<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Portuguese Law does not provide for a definition of \u00abconsumer policies\u00bb or \u00abconsumer insurance\u00bb. Instead, it bases the protection of consumers on the imposition of stricter rules in what regards mass risk insurance (all insurance that does not fall under the definition of large risk insurance). For such purpose, Insurance Contract Law determines that certain rules are mandatory in what concerns mass risk insurance. Said mandatory rules are divided into:<\/p>\n<ul>\n<li>Absolutely mandatory rules, which cannot be waived by the parties (e.g., format of the policy, insurable interest, rules regarding risk, means to pay the premium, consequences in the event premium is not paid);<\/li>\n<li>Relatively mandatory rules, which allow different solutions other than those established by law, provided said solutions benefit the policyholder, the insured or the beneficiary, where applicable (e.g., provision of pre-contractual information, risk disclosure obligation and consequences, policy contents).<\/li>\n<\/ul>\n<p>Furthermore, insurance contracts where the policyholder has no negotiation powers regarding the terms of the policy are subject to Standard Contractual Clauses Law, which forbids certain categories of contractual clauses.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal or regulatory resolution regime applicable to insurers in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Portuguese law establishes a framework for recovery and resolution of insurers, further to Solvency II Directive requirements.<\/p>\n<p>ASF is the competent authority to take a decision concerning the resolution of an insurance undertaking. This decision may be taken in the absence or following the adoption of reorganisation measures imposed by ASF, which may include resolution plans, funding arrangements and other resolution tools and requirements as determined by ASF.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are the courts adept at handling complex commercial claims?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Portuguese courts are used to having to deal with insurance-related claims. The situations in question can range from the simplest, such as motor claims, to more complex issues, such as financial insurance or claims regarding large risk insurance. Deadlines shall depend on the complexity of the claims.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is alternative dispute resolution well established in your jurisdictions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Alternative dispute resolution is well established in Portugal and effective in the resolution of insurance disputes from a consumer point of view, since they allow the consumer to obtain a sooner and cheaper solution than in a court of law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a statutory transfer mechanism available for sales or transfers of books of  (re)insurance? If so briefly describe the process<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The transfer of books of insurance held by Portuguese-based insurers and reinsurers to an assignee based in Portugal or in another Member State depends on ASF\u2019s authorisation, provided the assignee complies with the solvency capital requirement and (where applicable) the Member State of the commitment or where the risks are located agrees with said transfer. The authorisation is published at ASF\u2019s website and in two wide circulation newspapers; policyholders shall have one month as from the referred to publication to cancel their policies should they oppose to the transfer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the primary challenges to new market entrants? Are regulators supportive (or  not) of new market entrants?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Portuguese insurance market is a mature market where traditional insurers coexist with insurtech, and specialized insurers coexist with all-lines of business insurers, regardless of their State of origin. ASF is supportive of new market entrants, adopting a collaborative approach.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent is the market being challenged by digital innovation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Portuguese market welcomes digital innovation. Insurance players are increasingly resorting to digital innovation aiming to accelerate their processes and business models and to improve customer experience, as the demand from online consumers is expanding and there is a need to bring new products to market faster. Several insurers use artificial intelligence to automate operations and administrative tasks, namely in underwriting and claims functions with the view to speed-up operations, modernise legacy systems and reduce costs.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the digitization of insurance sales and\/or claims handling treated in your  jurisdiction, for example is the regulator in support (are there concessions to rules being made) or  are there additional requirements that need to be met?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Digitization is nowadays essential and unavoidable for insurers, distributors and the supply chain. The use of technology is a cross-cutting issue in every aspect of the insurance chain, from client onboarding (providing better customer experience, secure file-sharing, online document and data storage) to claims resolution (simplification and speed-up of the process).<\/p>\n<p>ASF is aware of new market trends and supports new technologies. The distance selling of insurances (whether online, whether by phone) is an established and well accepted practice in the Portuguese market.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent is insurers' use of customer data subject to rules or regulation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The insurers\u2019 use of customer data in Portugal is subject to General Data Protection Regulation (\u201cGDPR\u201d) and to Law no. 58\/2019 of 8\/8\/2019 on data protection, which ensures the application of GDPR into Portuguese legal order.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent are there additional restrictions or requirements on sharing customer data  overseas\/on a cross-border basis?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No additional restrictions or requirements apply regarding sharing of customer data other than those arising from GDPR.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent are insurers subject to ESG regulation or oversight? Are there regulations\/requirements, including in connection with managing climate change and climate  change related financial risks specific to insurers? If so, briefly describe the range of measures  imposed.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Portuguese-based insurers are subject to EU ESG Regulation, which is directly applicable into Portuguese legal order. In addition, insurers must comply with reporting obligations on ESG towards the ASF.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal or regulatory framework in respect of diversity and inclusion to which  (re)insurers in your jurisdiction are subject?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Portuguese law establishes some rules in this regard, namely the following:<\/p>\n<ul>\n<li>Prohibition of discrimination based on disability or aggravated health risk &#8211; any risk selection and acceptance based on these risks should rely on objective grounds in accordance with insurance techniques;<\/li>\n<li>Equal treatment between men and women &#8211; the use of gender as a factor in the calculation of premiums must not generate differences in individuals&#8217; premiums, unless said differences are based on relevant and accurate actuarial and statistical data.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Over the next five years what type of business do you see taking a market lead?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Insurtech will continue playing a very important role in the business. Insurers have been establishing partnerships with technology companies aiming to improve their processes and become more competitive.<\/p>\n<p>As for emerging risks, the following will take a lead:<\/p>\n<ul>\n<li>Cybersecurity (the market is expanding in Portugal, with insurers offering a wider choice to companies);<\/li>\n<li>Climate change \/ sustainability (the industry continues working to increase the offer of this type of product and reduce the protection gap);<\/li>\n<li>Demographic ageing and social and health care (the sector keeps working to offer products that are an alternative to the national public social protection system).<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4039<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/139906","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=139906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}