Finansinspektionens varningssystem avseende försäkringsbolag
I teori och praktik
The financial sector includes insurance business, which is a crucial part of the infrastructure in a modern economy. There are different parts to protect within the financial sector which is the reason for a comprehensive inspection. History shows several examples of disasters a mismanaged financial sector can bring. This also affects the society and stability over all. The inspection is conducted by the Swedish inspection of finance, which ensures that the insurance companies follow the law for its practice. The insurance companies who do not follow the law risk receiving a warning from the inspection of finance. If a warning is not enough, the permission to run an insurance business may be terminated.According to the law, the inspection of finance can simply give a warning if that is all that is needed according to the criteria. Hereinafter, the question is how the institute works in practice compared to what is stated in the legislation and also if the potential consequences applied by the inspection of finance are reflective of the purpose of the legislation?A comparison has been made through a qualitative empirical study of the authority case law concerning warning and terminating permission to practice insurance business. As a result of the study, it appears that the inspection of finance follows the intended purpose of the institute as far as what consequences are made. It has come to fruition that the institute is in a need of an update regarding its warnings and termination of permission to run an insurance business. The warnings also need to become more clear and significant to their recipients (the insurance companies) by suggesting what action can be made to adjust the flaw. The insured party must get more attention from the legislator regarding its protection against the insurance companies? incapability of fulfilling its obligations towards the insured party.