Austrian Insurance Supervision Act (VAG) / FMA

Core elements

The Austrian Insurance Supervision Act 2016 (VAG 2016) transposes the European Solvency II Directive and requires insurance undertakings to hold a regulatory licence, maintain adequate solvency capital, operate a sound business organisation (governance, risk management, actuarial function), and comply with ongoing reporting and disclosure duties towards the supervisory authority. The Financial Market Authority (Finanzmarktaufsicht, FMA) is Austria’s single integrated supervisor; besides insurers it also oversees banks, investment firms, and pension funds (Pensionskassen), and maintains the register of insurance intermediaries.

Relationship to distribution and intermediary law

While the VAG primarily governs the undertaking level (licensing, solvency, governance), the duties of insurance intermediaries in Austria are further specified by trade law and the Insurance Broker Act (Versicherungsmaklergesetz); both frameworks jointly implement the EU Insurance Distribution Directive (IDD). The FMA is also responsible for licensing and ongoing supervision of pension funds under the Pension Funds Act, which distinguishes it from purely insurance-focused supervisors elsewhere.

Relevance for insurance practice

For insurers and intermediaries operating in Austria, the FMA is the central point of contact for licensing, notification, and disclosure obligations; breaches of the VAG can trigger supervisory measures up to withdrawal of the licence. In cross-border EEA business (freedom of services and establishment), the FMA handles market entry notifications from insurers based in other EEA states and coordinates with home-state authorities and EIOPA.