Insurance companies operating in Cyprus were originally registered in England under English insurance legislation. In 1969, a law was passed to allow the establishment of local insurance companies. The insurance regulatory regime in Cyprus is governed by the insurance Services and Other Related Issues Law known as the “2002-2008 Law”, which came into force on 1 January 2003. The 2002 Law expressly abolished the Insurance Laws 1984-2001 and thoroughly revised the system of insurance administration in Cyprus. It may be supplemented from time to time by Regulations issued by the Cypriot Council of Ministers. Like all laws in Cyprus, the 2002 Law is written in Greek, and the original Greek version prevails over any English translation.
The 2002 Law has been amended by Law Number 26(1) of 2008. The 2002 Law and the amendment of Law Number 26(1) of 2008 will be referred to together as the “Insurances Services and Other Related Issues Law of 2002 to 2008”. The purpose of the amendment is to implement European Directive 2005/68/EC of the European Parliament and Council on reinsurance and to amend Council Directives 73/239/EEC as well as Directives 98/78/EC and 2002/83/EC.
Specifically, objectives of the Reinsurance Directive, which is being implemented into Cypriot national law, are to establish a sound and prudent supervisory regime in the interests of policy holders; to allow reinsurers headquartered in the European Union (EU) to carry on business throughout the EU under the freedom of establishment and the freedom to provide cross-border services; to abolish collateral requirements within the EU or EU reinsurers; and to enable the negotiation and establishments of reciprocal treaties with other regulatory regimes.
The Directive provides a harmonized regulatory framework for reinsurance in the
European Union. By establishing a reliable system of supervision of the cross-border reinsurance market, the Directive aims to strengthen the insurance markets. This Directive brings about such harmonization as is essential, necessary, and sufficient to achieve the mutual recognition of authorizations and prudential control systems, thereby making it possible to grant single authorization valid throughout the Community and to apply the principle of supervision by the home member state.
Insurance Procedures Legal Advice
In today’s world, insurance procedures are more complicated than ever. Our Firm can provide legal advice on any insurance documents, especially in occasions where the client feels that his interests are not being looked after by the proposed insurer.
Our team of lawyers is also in a position to interpret the numerous clauses in the insurance documents where the insured has difficulties in comprehending. Our expertise, experience, local knowledge and familiarity with information technology, enables us to utilise substantial resources to meet the challenges of insurance litigation in our modern times. We seek to identify fraudulent and exaggerated claims from an early stage, as we aim to provide early stage liability advice whilst always seeking to achieve cost effective settlements, by engaging in constructive communications with claimant solicitors to achieve the earliest resolution. In the event that claims are led to trial, our litigation team provides representation that not only protects the interests of our clients but also seeks to aid the Court to reach a fair result on the issues in dispute.