Starting March 2nd 2019, commercial associations in Estonia are allowed to perform insurance activities inside country borders, under the title of insurance associations. The Amendment on Insurance Activities Act, the law governing the insurance market in Estonia, applies the regulation for insurance associations as well.

Insurance associations will gain some of the rights and obligations that insurance companies currently have in Estonia. For example, capital requirements for an insurance association that offers life, liability or credit insurance will be EUR 3 million. If the activity of the insurance association consists of other types of non-life insurance, the capital share must be at least EUR 2 million.

"AMICE (Association of Mutual Insurers and Insurance Cooperatives in Europe) is delighted that the Estonian legal system, which is based on the continental European model, has been successfully amended to include provisions for mutual and cooperative insurance structures. We welcome the Estonian Authorities' recognition of the positive and valuable role that mutual and cooperative insurance can play for both the economy and policyholder. We hope that it can be a source of inspiration for other markets where the mutual model is still not recognized," commented Sarah GODDARD, AMICE Secretary General.

The text of the law can be found here, in Estonian language.