Instructions for Insurance Companies Operating in Another Member State via Freedom to Provide Services (FOS)

INSTRUCTIONS FOR INSURANCE COMPANIES INTENDING TO CONDUCT INSURANCE BUSINESS IN ANOTHER MEMBER STATE VIA THE FREEDOM TO PROVIDE SERVICES – FOS

An insurance company may conduct insurance or reinsurance business for which it has HANFA's approval in another member state:

• on the basis of the right of establishment, or
• in accordance with the freedom to provide services,
  if it meets the conditions set by the legislation of the service-providing member state or the member state assuming the obligation.

An insurance company intending to conduct insurance business in another member state in accordance with the freedom to provide services must beforehand:

• pursuant to Article 63(1) of the Insurance Act (Official Gazette nos. 30/2015, 112/2018, 63/2020, 133/2020) notify HANFA in writing via the form published on its website, and
• pursuant to Article 12(17) and (18) of the Regulation on the Type and Amount of Fees of the Croatian Financial Services Supervisory Agency (Official Gazette no. 26/2019) submit proof of payment of the notification fee to the competent supervisory authority of the member state and to the Croatian insurance company regarding the direct conduct of insurance business in that member state, in the amount of 2,500.00 HRK or 1,000.00 HRK depending on whether it concerns the initial notification or extension of activities.

Instructions for Completing the Form:

1. The form must be completed exclusively in English.
2. The form must indicate whether it concerns an initial notification or a modification of the notification.
3. In case of extension of activities, the form must indicate that it concerns a modification of the notification; under point 4, only new types of insurance must be marked, and under point 5, only the new types of insurance and/or the nature of new risks or obligations that the insurance company intends to cover in the host member state must be described.
4. Under point 1, enter the name and address (street address, postal code, city, and country) of the insurance company's registered office. If available, also provide the electronic mail address of the registered office, enabling the host member state's supervisory authority to send information from section 3.2.3.2.1 electronically. If the electronic mail address is not available, enter N/A (non applicable).
5. Under point 2, if applicable, enter the names and addresses of branches (excluding the insurance company's registered office) located in member states from which the insurance company plans to provide services – in other words, if the insurance company intends to provide its services from branches located in other member states – this section should list the names, addresses (street address, postal code, city, and country) of those branches, as well as the first and last names of the persons effectively managing the branch and their electronic mail addresses, if available. If the insurance company does not intend to provide its services from branches located in other member states but exclusively from its registered office, enter N/A (non applicable).

[1] The host member state's supervisory authority must, as soon as possible after receiving the notification, notify the insurance company's registered office in writing of all conditions under which, in the general interest, activities must be carried out in the host member state, or notify that there are no such conditions.

6. Under point 3, enter the name of the country in which the insurance company intends to provide its services via the freedom to provide services.
7. Under point 4, indicate the types of insurance according to Annexes I and II of the Solvency II Directive for which the insurance company has approval to conduct insurance or reinsurance business.
8. Under point 5, describe the type of insurance and/or the nature of risks or obligations that the insurance company intends to cover in the host member state[2].
9. The insurance company must complete point 6 of the form only if it intends to cover risks from type 10 insurance in Part A of Annex I of the Solvency II Directive, excluding carrier liability. In that case, provide the name, address, and electronic mail address of the claims representative, and declare that the insurance company has become a member of the national insurance office and the national guarantee fund of the host member state. If the company does not intend to cover risks from type 10 insurance in Part A of Annex I of the Solvency II Directive, enter N/A (non applicable) in these fields.
10. Under point 7, if the insurance company intends to cover risks related to legal expenses insurance, indicate the selected option among those described in Article 200 of the Solvency II Directive. If the company does not intend to cover risks related to legal expenses insurance, enter N/A (non applicable).
11. Under point 8, provide the LEI of the insurance company notifying its intention to conduct business on the basis of the freedom to provide services (or, if LEI is not available, the identification code used in the local market assigned by HANFA[3]).
12. Under point 9, indicate whether the insurance company intends to operate exclusively or almost exclusively in the host member state.
13. Under point 10, if the company belongs to a cross-border group, provide the name of the group supervisory authority and the group structure as stated in the coordination agreement annex, along with the latest reported group solvency status. If the company does not belong to such a group, enter N/A (non applicable).
14. Under point 11, the insurance company must provide all available information regarding expected third parties and related parties involved in insurance activities, including but not limited to anticipated distribution partners in the host member state. If no such parties exist, enter N/A (non applicable).
15. Under point 12, provide the identification of the person within the insurance company responsible for resolving complaints regarding service provision activities based on the freedom to provide services – the person's first and last name and electronic mail address, if available. Additionally, attach a copy of the person's ID card/passport or a copy of the decision appointing them to the aforementioned position.
16. Under point 13, provide the results of the company's compliance assessment with product oversight and governance requirements, if available: e.g., material findings regarding product design, distributor monitoring, target market identification, and product testing. If no such assessments exist, enter N/A (non applicable).
17. Under point 14, provide a description of relevant guarantee funds for policyholders in the home member state, where applicable. If not applicable, enter N/A (non applicable).
18. Under point 15, provide the first and last name, phone number, and electronic mail address of the person HANFA may contact regarding the notification.
19. The completed form, together with proof of fee payment, may be submitted electronically to Passport.Insurance@hanfa.hr, by post, or in person at HANFA's Registry Office on working days from 9 a.m. to 2 p.m.

[2] For easier navigation, it is recommended to consult the Regulation on the Allocation of Risk Types by Groups and Insurance or Reinsurance Types.
[3] Registry number assigned by HANFA.

Note:
Pursuant to Article 63(5) of the Insurance Act, if any data submitted in the form changes, the insurance company must notify HANFA in writing at least one month prior to the occurrence of such change.
In this case, the insurance company must complete the form according to the instructions above, indicate that it concerns a modification of the notification, and submit the form to HANFA, which will notify the competent authority of the host member state of this modification at the latest one month from the date of receiving the insurance company's notification.

Instructions for Fee Payment:
Initial Notification
Amount: 2,500.00 HRK
Model: 67
Reference Number: OIB-118-014
Payment IBAN: HR91 2390 0011 1003 29373.
Purpose of Payment: Initial FOS Notification – Party Name

Extension of Activities
Amount: 1,000.00 HRK
Model: 67
Reference Number: OIB-118-048
Payment IBAN: HR91 2390 0011 1003 29373.
Purpose of Payment: Extension of FOS Activities – Party Name

Note:
For notifications regarding changes to the data in the form (excluding extension of activities), the company is not required to pay any fee to HANFA.
If an insurance company intends to conduct insurance distribution activities based on the freedom to provide services in multiple member states, it may list several member states in point 3 of the form during the initial notification. In that case, the insurance company must pay a single fee for the initial notification.