ulator, the ASF. The ASF will, on application, grant authorisation if the applicant demonstrates that, inter alia, will comply with several provisions regarding the company's management, employees, finances, and structure.
Decree-Law no. 72/2008, of April 16, provides the main regulation for the insurance and reinsurance sector in Portugal. It is a diploma that provides the general rules on insurance contracts and typifies the contractual regimes applicable to the most economically and socially relevant insurances, such as health, car, or life insurance.
Law no. 7/2019 of 16 January (Insurance Distribution Law), on its turn, approves the legal framework on insurance and reinsurance distribution, transposing Directive (EU) 2016/97, known as the Insurance Distribution Directive. It establishes a uniform legislative framework applicable to the different participants, insurance intermediaries, ancillary or otherwise, and insurance undertakings, directly involved in the distribution activity, regardless of the channel used. Insurance intermediaries are now qualified under the following categories: insurance agent, insurance broker and ancillary insurance intermediary.
Finally, and without prejudice to the other existing payment mechanisms, insurance companies are obliged to pay 0.048% of the revenue regarding direct life insurance and 0.242% of the revenue regarding direct insurance of the other branches in supervisory fees, as indicated in Ordinance no.74-B/2016, of 24 March.
Insurance intermediaries are subject to payments between EUR 50 and EUR 400 per year, depending on their turnover, also due to the above-mentioned Ordinance.
Additional comments regarding the legal situation for InsurTech-services or what InsurTech’s must be aware of in this business area
N/A.
Economic conditions
Market size for InsurTech-services and biggest companies in this business area
Seventeen-per-cent (17%) of the Portuguese FinTech market is held by InsurTechs. This is a very expressive number, only preceded by the payments and money transfers sector with 27% of the market share.
Notwithstanding the other InsurTechs that may be mentioned, we can highlight the following as the largest Portuguese InsurTechs: habit, Keep Warranty, Kooli, lovys, and mudey. These are Portuguese InsurTechs with distinguished business models.
Habit is a technology provider and insurance distribution platform that bridges non-insurance brands and companies with insurers and re-insurers in order to sell insurance policies. On the other hand, Keep Warranty offers a 100% digital channel to sell and buy life and non-life insurances. Kooli, for its part, has developed a platform allowing to manage the entire health insurance benefits. In this sense, Lovys offers customised and fully digital insurance products through an all-in-one monthly subscription (or separately), to a whole range of tailor-made insurance: home, car, mortgage, smartphone, pets etc. Finally, Mudey provides an intelligent all-in-one platform to buy and manage insurance.
Although there are no official or estimated figures for the aggregate profits of the InsurTech sector in Portugal, it is possible to say that the largest Portuguese FinTechs raised € 437 million in capital, and from August to December 2021, more than € 820 million was raised in a total of 115 investment rounds according to the Portuguese FinTech House 2021 report.
Additional comments regarding the economic situation for InsurTech-services or what InsurTech’s must be aware of in this business area
N/A.