Before the application comes the decision: do you need to insure, or is distribution enough? If you really do need to retain risk, we build the application that the DGSFP examines: the classes of insurance you apply for, legal form, system of governance with its key functions, investment policy and a business plan that stands up to questioning.
Need an insurance company? Free regulatory assessment
Tell us what risk you want to cover, for whom and with what capital. We will tell you whether the route is a license, buying an existing company, underwriting on behalf of an insurer or distribution.
An insurance application is won before it is written. First you decide on the model and the entry route; then you build the blocks that the DGSFP checks against one another.
Applying for the license means accepting a complete regime from day one: risk-sensitive capital requirements, valuation of assets and liabilities, key functions, ORSA and periodic reporting to the supervisor. It pays to see the destination before you sign up for the journey.
Acquiring a company with a live license saves you the incorporation application, but it opens another front: regulatory due diligence, an inherited portfolio and provisions, and the supervisor’s prior assessment of the qualifying holding you acquire.
Board, effective management and key function holders: good repute, qualifications and real time commitment, documented before anything is filed.
Actuarial, compliance, internal audit or claims handling in third-party hands: the supervisor accepts delegating the task, never the responsibility.
Agents, bancassurance, brokers or direct sales. The channel shapes the acquisition costs in your business plan and your conduct obligations under the IDD.
Insurance activity is on the list of obliged entities in Article 2 of Law 10/2010, on the terms the law sets: AML/CFT manual, due diligence and internal control body.
Four situations we see again and again. In two of them, the conversation ends in a license; in the other two, in a much shorter route.
“We cover Spain from the parent company, but the local business now calls for its own balance sheet, brand and decision-making. We want to know what a Spanish company really involves.”
“We underwrite with third-party capacity, and the insurer keeps the technical margin. The question is whether retaining our own risk is worth the regulatory leap it involves.”
“We have capital and a team. What we are not sure about is whether it is better to apply for a new license or to buy a small company with the classes already authorized and a running portfolio.”
“We pay very high premiums for a risk we understand better than our insurer does. We want to see whether an insurance structure of our own makes sense or is over-engineering.”
They are not formal defects you can cure when asked: they are decisions made at the start that you then have no way of defending before the DGSFP.
Applying for classes “just in case”: each class you apply for carries its own level of requirements —capital, technical provisions, actuarial capacity and reinsurance program. A broad range “to leave some room” makes the application more expensive and forces you to justify a business that does not exist yet.
A sales business plan, not a technical one: premium projections with no assumptions on claims, expenses, reinsurance or projected solvency. This is where most applications get stuck, because the supervisor really reads the plan and compares its figures with the rest of the documentation.
A paper system of governance: key functions assigned to names with no time, no independence and no work plan. It shows in the first meeting, and from then on every document is read under a magnifying glass.
| Route | Who retains the risk | What it requires of you |
|---|---|---|
| Insurance company | You. The risk goes onto your balance sheet and into your technical provisions. | Prior authorization by the DGSFP for each class, capital in the amounts set by the rules, a full system of governance and the Solvency II regime from the day you are registered. |
| Underwriting agency | The insurer that delegates underwriting authority to you; you operate within its limits. | A delegation agreement with an authorized insurer, strict control of underwriting and the regime the rules set for this type of firm. No insurance balance sheet of your own. |
| Distribution: broker or agent | The insurer. You intermediate, advise and earn commission. | Registration in the administrative register, certified training and the conduct obligations of the IDD and Royal Decree-law 3/2020. Far lighter requirements than an insurance license. |
We analyze what risk you want to cover, with what capital and on what timeline, and we tell you whether the project calls for DGSFP authorization, buying an authorized company, an underwriting agreement with an insurer or simple distribution. If it has to be a license, we build the full application and defend it until registration.
In many projects, no. If what you want is to sell cover, you can do so as a broker or agent without retaining risk, under a much lighter regime: we explain it in our pages on insurance distribution under the IDD and insurance brokers.
An insurance license is only justified when you want to retain the risk on your balance sheet: keep the technical margin, design your own product without depending on a third party’s capacity and build value on that portfolio. If your plan is to distribute under your own brand, there are legitimate shortcuts.
We do not publish a figure because it depends on the classes you apply for: the rules set a minimum share capital and a minimum guarantee fund according to the authorized classes, and on top of that sits the prudential requirement of Solvency II, which is sensitive to the real risk of your portfolio.
The practical reading: entry capital is rarely the number that matters. What matters is the capital you need to maintain as you grow, and that is determined by your business plan. We calculate it with you before you commit to anything.
The ones you will actually write in the first few financial years, and not one more. Authorization is granted by class, and each class carries its own requirements: capital, technical provisions, technical bases, actuarial capacity and adequate reinsurance.
In addition, the rules separate life and non-life business, with the exceptions they themselves provide. Applying for a broad range “so you never have to come back” is the most expensive mistake: it lengthens the application, raises the capital and forces you to justify a business that is not in your plan. Adding classes later is also possible through its own application.
The decision deadline is the one set by the rules, and we do not give estimates: it would be irresponsible and, above all, useless. What sets the real timeline of an insurance project is not the legal deadline but how many rounds of requests for information your application triggers.
A business plan with traceable assumptions, key functions with real holders and an investment policy consistent with the liabilities reduce those rounds. A template application multiplies them. In our experience, that is where six months are won or lost—not at the filing desk.
Because it is the part that shows the company can run itself. Solvency II requires an effective system of governance: a competent board, effective management by fit and proper persons, written policies that are actually applied, and the key functions—risk management, actuarial, compliance and internal audit—with holders, resources and reporting to the board.
The DGSFP does not assess nice-looking organization charts: it assesses whether those functions have time, independence and the ability to say no. We prepare that architecture and the supporting documentation on the fit and proper assessment of senior management.
Yes, and in some projects it is the most sensible route: you buy a live license, classes that are already authorized and a working structure. In return, you inherit the company’s portfolio, provisions and compliance history, so regulatory due diligence carries as much weight as financial due diligence.
The transaction is not unrestricted: acquiring a qualifying holding—general threshold of 10%, with further thresholds of 20%, 30% and 50%—requires the supervisor’s prior assessment of the acquirer. We cover this in buying a regulated entity and qualifying holdings.
Whether the business you describe can exist. That means: projected premiums by class and channel, claims assumptions, acquisition and administration expenses, the reinsurance program, technical provisions, the evolution of own funds and of capital requirement coverage, and cash flow.
What gets penalized most is not an optimistic assumption but an assumption without traceability: figures that cannot be rebuilt or reconciled with the rest of the application. If the channel in the plan does not match the distribution contracts, or the reinsurance does not support the planned growth, a request for information is sure to follow.
No. Insurance activity is reserved to authorized and registered entities: covering risks without authorization exposes you to the penalty regime of Law 20/2015, to problems with the validity of the contracts concluded and to reputational damage that also complicates the pending application.
What you can do in the meantime: incorporate the company, finalize the team, negotiate reinsurance and distribution agreements, develop the technology and prepare the product. And if you need to start invoicing right away, there is the intermediate route of distributing or underwriting on behalf of an authorized insurer.
Quite a lot. A unit-linked policy or any other insurance-based investment product (IBIP) adds a very demanding conduct layer to the insurance regime: client assessments similar to those under MiFID, the PRIIPs KID, control of costs and inducements, and product governance.
That shapes the application from the design stage: the investment policy, the channel and the pre-contractual documentation have to be aligned. We cover this in IBIPs and unit-linked products.
Authorizing an insurer is not about filling in a long form: it is about showing that the business is technically viable and that the company will be able to govern itself. This is the route we follow.
Before spending a single euro on the application, we put numbers on the four routes: a new license, buying an authorized company, delegated underwriting on behalf of a third party, or pure distribution. Many projects come out of this stage with a cheaper and faster plan.
Classes, legal form, shareholders, capital, system of governance with its key functions, technical bases, reinsurance, investment policy and business plan. Everything has to tell the same story: the DGSFP cross-checks each block against the others.
Responding to requests for information, registration and setting up the regime that starts on the day you are registered: calculating and covering capital requirements, reporting, ORSA, internal control and ongoing conduct and AML/CFT compliance.
If you want to see the regime you are taking on first, start with Solvency II. And if you would rather explore the shortcut, see buying a regulated entity.
These terms come up in the application, in requests for information and in your day-to-day operations. Using them precisely saves meetings and avoids costly misunderstandings.
The Law on the regulation, supervision and solvency of insurance and reinsurance undertakings. It sets the rules on access to the activity, supervision and the penalty regime.
The regulation implementing the LOSSEAR: it details the requirements for the application, the system of governance, investments, provisions and the reporting regime.
It authorizes, registers and supervises Spanish insurance and reinsurance companies, as well as insurance distributors.
The category of risks for which the license is granted. The company may only operate in the authorized classes; extending them requires a new application.
An absolute capital floor below which the company cannot operate, regardless of what the risk-sensitive calculation produces.
The functions that support the Solvency II system of governance. They need a fit and proper holder, resources, independence and a reporting line to the board.
The amount the company sets aside to meet the commitments it has taken on toward policyholders and beneficiaries, valued under the Solvency II framework.
The rule that governs the investment policy: only assets whose risks the company can identify, measure, monitor and control, consistent with its obligations.
A firm that underwrites risks on behalf of an insurance company that delegates that authority to it, within the limits of the agreement and of the applicable regime.
Classes applied for that are consistent with the product, the channel and the business plan, with no extensions that nobody will use in the first financial years.
Description of each class, policy terms and technical notes, rates, agreements or letters of intent with the channel, and details of the target market.
A corporate form permitted by the LOSSEAR, a corporate purpose tailored to insurance activity, capital evidenced in the amounts set by the rules, and fit and proper shareholders.
Draft articles of association, certificate of capital payment, shareholder table with beneficial owners, source of funds documentation and qualifying holding filings.
A competent board, effective management by fit and proper persons, and key functions with a holder, resources, independence and a reporting line to the board.
Organization chart showing each person’s time commitment, documented fit and proper questionnaires and CVs, written governance policies and work plans for each key function.
Sustainable pricing, technical provisions calculated under the framework and a reinsurance program that supports growth and claims peaks.
Actuarial function report, technical notes, claims assumptions with their source, reinsurance contracts or slips, and counterparty analysis.
Investments under the prudence principle and consistent with the liabilities, and projections that keep the capital requirements covered in both the base and the adverse scenario.
Board-approved investment policy, financial model with traceable assumptions by class and channel, projection of own funds and scenario analysis.
If you recognize yourself in two or more of them, it is worth stopping to review the fit before you file with the DGSFP.
Setting up an insurance company is the most expensive and slowest of all the options on the table. Before you commit capital, a team and a huge part of your timeline, it is worth taking a hard look at the alternatives: distributing without retaining risk, entering Spain from a company already authorized in the EU, or fitting the product into a different structure.
A broker sells, advises and earns commission without putting up its own balance sheet. If your edge lies in customer acquisition rather than in technical expertise, this is the fast route.
If your group already has an insurer authorized in the EU, you may not need a Spanish company: consider the free provision of services or a branch.
IBIPs add a conduct layer similar to MiFID, the PRIIPs KID and cost control. It is best to design the product before setting the classes.
Taking deposits or granting credit on a regular basis is a different application and a different supervisor. Compare the effort before choosing a license.
If you are already sure that the license is the way to go, let’s start with the technical assessment. And if you are not, see buying a regulated entity, insurance distribution under the IDD or the Solvency II framework you will inherit in any case.
Tell us which risks you want to underwrite and how much capital you have, and we will tell you whether the project calls for an insurance license or whether there is a shorter, cheaper route.
Last updated: August 4, 2026
Setting up an insurance company in Spain requires prior administrative authorization from the DGSFP (Dirección General de Seguros y Fondos de Pensiones — Spain’s insurance supervisor) and registration in the relevant register. The framework is the LOSSEAR (Ley 20/2015), implemented by Royal Decree 1060/2015 (ROSSEAR), with the European Solvency II regime sitting above both. It is a long, expensive project with a great deal of technical engineering behind it, so the first useful question is not how to apply for the license, but whether your business really needs to retain insurance risk.
The insurance business has several layers, and only one of them requires this license. If your project intermediates—it sells other insurers’ policies, advises and earns commission—you are in distribution territory: broker, agent or bancassurance operator, with registration, training and conduct obligations under the IDD, but with no insurance balance sheet and no solvency requirements. If your project underwrites on behalf of an insurer that delegates that authority to you, you control product and price within the agreed limits, and the risk stays on the balance sheet of the company that gives you capacity. If what you want is to keep the technical margin and build value on a portfolio of your own, then yes: you need a license. And there is still a fourth route, which is not to build one at all: buy a company that is already authorized, with its classes up and running, or enter the Spanish market from a group insurer authorized in another Member State through the free provision of services or a branch. The four options carry radically different regulatory costs, and the difference between choosing well and choosing out of inertia can be whole years of cash flow. This page exists so that you make that decision with data, not with enthusiasm: if, after the analysis, the answer is still a license of your own, the application is worth it and it can be built well.
Authorization is granted by class, and this is the decision that most shapes the cost of the project. Each class carries its own requirements: capital, technical provisions, technical bases, actuarial capacity and a proportionate reinsurance program. In addition, the rules separate life and non-life business, with the exceptions they themselves provide, so the range of classes is not just another box on the form but a structural decision. Applying for more “so you never have to come back” lengthens the process and forces you to justify a business that is not in the plan; adding classes later also goes through its own application, and it is a predictable path. As for the legal form, the LOSSEAR allows a closed list—public limited company (sociedad anónima), mutual insurer, cooperative and mutual provident society (mutualidad de previsión social), as the case may be—with a corporate purpose limited to insurance activity and the operations the law allows. And as for the shareholders, the supervisor looks at who is behind the project: the good repute and financial soundness of the shareholders, the group structure, the beneficial owners and the source of the funds contributed. Anyone who acquires a qualifying holding—general threshold of 10%, with further thresholds of 20%, 30% and 50%—is subject to prior assessment. Preparing this block late is one of the most common causes of delay, because it depends on third parties who do not move at the project’s pace.
The governance block is the one that shows the company will be able to run itself, which is why it takes up much of the review. Solvency II requires an effective system of governance: a board with sufficient collective competence, effective management by fit and proper persons, written policies that are approved and reviewed, and the key functions—risk management, actuarial, compliance and internal audit—with a designated holder, allocated resources, independence and a reporting line to the board. The DGSFP does not assess organization charts: it assesses real time commitment, technical capacity and room to disagree. If any function is outsourced, the delegation must comply with the rules on outsourcing critical functions, with a contract and oversight, and the responsibility remains yours. Alongside governance comes the investment policy, which is governed by the prudent person principle: there is no closed list of eligible assets, but rather an obligation to invest only in assets whose risks the company can identify, measure, monitor and control, consistent with the obligations it has taken on and with the liquidity its liabilities require. You should also know that the Solvency II review was published in early 2025 and is expected to apply in 2027, and that it strengthens proportionality for small and non-complex undertakings: a new project should already be designed with that framework in mind. All of this is backed by evidence: minutes, versioned policies, work plans and fit and proper reports.
This is where serious projects part ways with the rest. An insurer’s business plan is not a sales document: it is a technical model that must explain, class by class and channel by channel, the expected premiums, the claims assumptions with their source, acquisition and administration expenses, the reinsurance program, the evolution of technical provisions, the projection of own funds and of capital requirement coverage, and cash flow for the period, on the terms and over the horizon the rules require. It must also include adverse scenarios: what happens if claims deviate, if growth is delayed or if reinsurance becomes more expensive. What gets penalized is not an ambitious assumption, but an assumption that nobody can rebuild or reconcile with the rest of the application: if the channel in the plan does not match the distribution agreements, or the capital does not support the projected volume, a request for information is inevitable. Our job is to make sure that every figure in the model is backed by a document, and that the plan, the technical notes, the reinsurance and the investment policy tell exactly the same story. That is the standard of an application that withstands a request for information and, after registration, the first supervisory review.
This content is for general information purposes only and does not constitute legal advice. The legislation cited may have been amended after the update date shown: always check the version in force or contact us to analyze your specific case.
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