Ministry of Economy Revokes Hello Insurance's Authorization Due to Capital Deficiencies
Hello Insurance's authorization revoked by the Ministry of Economy for failing to meet capital requirements.
Key Points
- • Hello Insurance's authorization revoked for insufficient capital.
- • Minimum required capital was €4 million; only €800,000 was reported.
- • Revocation halts new insurance contracts and initiates dissolution process.
- • Consorcio de Compensación de Seguros tasked with overseeing liquidation.
On August 1, 2025, Spain's Ministry of Economy officially revoked the authorization of Hello Insurance Group, citing the company's failure to meet mandated capital requirements. Published in the Official State Gazette (BOE), the revocation order follows a proposal from the Directorate General of Insurance and Pension Funds (DGSFP).
Hello Insurance, which was inaugurated in 2019 as Spain's first insurtech authorized to operate in various insurance sectors, significantly fell short of the required €4 million minimum capital. By the end of 2024, it reported only €800,000 in available funds, which constitutes a mere 20% of the necessary capital for solvency. This financial shortfall prompted the Ministry to enact a total revocation of the administrative authorization under Article 169.4.c) of Law 20/2015, thereby initiating the administrative dissolution of the insurer.
The Ministry's action prohibits Hello Insurance from entering into any new insurance or reinsurance contracts immediately. As part of the liquidation process, the responsibility has been designated to the Consorcio de Compensación de Seguros, which will manage the winding down of the company's operations. Further regulatory processes include mandatory registration changes in the administrative registry and notifications to both the European Insurance and Occupational Pensions Authority (Eiopa) and the official journals necessary for regulatory compliance.
Hello Insurance's operational capabilities have been severely curtailed following the revocation. The company, initially launched with great potential within the fast-evolving insurtech space, now faces enhanced scrutiny and formal dissolution due to its inability to meet financial requirements vital for insurance viability. With further developments expected as the liquidation process unfolds, stakeholders are closely monitoring the implications for the Spanish insurance market at large.