Austria Insurance Industry – Governance, Risk and Compliance

Austria Insurance Industry Regulation Overview

The FMA is the government authority responsible for the regulation and supervision of financial sectors in Austria including the insurance industry. The International Association of Insurance Supervisors (IAIS), European Insurance and Occupational Pensions Authority (EIOPA), and Federation of European Risk Management Associations (FERMA) are the other regulatory and supervisory bodies that oversee the operations of the Austrian insurance industry.

The Austria insurance industry governance regulation research report provides a detailed analysis of the regulations for several insurance types including life, property, motor, and liability. The report also gives insights into recent and upcoming changes in non-admitted insurance regulations, taxation, and the legal system. Also, leverage our elaborate procedural review of new company registrations and operations based on key parameters such as license, FDI, minimum capital requirements, and solvency to better understand market avenues.

Austria Insurance Industry – Key Regulators and Legislation

Financial Market Authority (FMA): The Austrian FMA was founded in April 2002, to supervise the industry. It monitors insurers to ensure that they obey their legal requirements and follow principles of fairness and transparency. It oversees the insurers over their whole life cycle; from granting the license that allows them to trade, through their periods of activity to liquidation till the withdrawal or return of their trading licenses.

International Association of Insurance Supervisors (IAIS): The IAIS is a membership-driven global organization representing insurance regulators and supervisors. It formulates and issues various global insurance principles, standards, and guidance, provides training and support on issues related to insurance supervision and organizes meetings and seminars for insurance supervisors. The IAIS works closely with other financial sector standard-setting bodies and international organizations to promote financial stability.

A few of the laws regulating the Austria insurance industry are:

• Insurance Supervision Act of 2016
• Motor Vehicle Liability Insurance Act
• Regulation 785/2004
• Commerce and Industry Regulation Act

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Austria Insurance Industry - Compulsory Insurance

A few of the compulsory insurances required within the Austria insurance industry are:

• Motor Third-Party Liability Insurance
• Aviation Liability Insurance
• Marine Liability Insurance
• Professional Indemnity Insurance
• Social Security Insurance

Compulsory Insurance in Austria

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Austria Insurance Industry - Company Registration and Operation

According to Article 6 of the Insurance Supervision Act 2016, the insurance and reinsurance companies intending to carry out insurance business in Austria are required to obtain authorization from FMA. According to Article 7, however, the license permitted in Austria for insurance and reinsurance activities shall be valid in all the other member countries. In addition, Article 6 of the Insurance Supervision Act 2016 requires reinsurance companies to obtain authorization from FMA to carry out insurance business in Austria.

The FMA grants different types of licenses to companies for different types of insurance and reinsurance businesses. According to Annexure A of the Insurance Supervisory Act 2016, insurers in Austria are authorized to get licenses for multiple types of insurance businesses including life insurance, marriage insurance, railway rolling stock insurance, and goods in transit insurance among others.

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Austria Insurance Industry – Taxation

Tax is imposed upon insurance premiums within the insurance industry in Austria. The other taxes imposed are corporate income tax, corporate capital gains tax, and value-added tax.

Corporate Income Tax: Both resident and non-resident companies are subject to corporate tax. A company is assumed to be resident if it is incorporated or managed and controlled in Austria and taxed on its worldwide income. Foreign entities with a permanent establishment in Austria are taxed only on income earned within Austria and branches of the corporations are taxed the same as subsidiaries. The standard corporate income is imposed at a rate of more than 22% on profits, irrespective of whether profits are distributed or retained.

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Scope

• The report covers details of the insurance regulatory framework in Austria.
• The report contains details of the rules and regulations governing insurance products and insurance entities.
• The report lists and analyzes key trends and developments in the country’s insurance regulatory framework.
• The report analyzes the rules and regulations about the establishment and operation of insurance businesses in the country.
• The report provides details of taxation imposed on insurance products and insurance companies.

Key Highlights

• The Financial Market Authority (FMA) regulates the insurance industry in Austria.
• Insurance products and services in Austria are exempted from VAT.
• Automobile liability insurance and health insurance are mandatory in Austria.
• The placement of non-admitted insurance and reinsurance is not permitted in Austria except for insurance products issued by companies licensed in other EEA member states.

Reasons to Buy

• Provides FAQ-style analytical insights comprising 129 knowledge elements on insurance compliance applicable to the country.
• Gain insights into the insurance regulatory framework in Austria.
• Track the latest regulatory changes and expected changes impacting the Austria insurance industry.
• Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
• Understand key regulations and market practices about various types of insurance products.