The Swedish Insurance Contracts Act 2005

by Johanna Hjalmarsson

On 1 January 2006 a new Insurance Contracts Act (Försäkringsavtalslag (SFS 2005:104)) entered into force in Sweden, replacing the Insurance Contracts Act 1927 and the Consumer Insurance Act 1980. The main purpose of the enactment is to provide stronger protection for assured consumers, while satisfying commercial sector requirements of freedom of contract. The perpetual conundrum for successive Swedish governments is the equilibrium between the need for a healthy business climate and the policy of strong protection of consumers, employees and other vulnerable interests – a particularly delicate one with insurance which by definition involves some description of interest at risk. Whether the balance has been struck correctly is ultimately a political question, but the features of the Act are susceptible to legal analysis. The legislation is discussed by Johanna Hjalmarsson, research assistant, Institute of Maritime Law, Southampton University.