Regulatory Alerts2024-09-18
Directive No. 06/2016 on Conduct of Insurance Business
The National Bank of Rwanda issued Directive No. 06/2016 to establish prudential and operational standards for licensed insurers, mandating sound dividend distribution policies and strict financial reporting timelines. The directive requires insurers to maintain specific solvency and liquidity ratios, fully admit government-related premium receivables within sixty days, and implement board-approved strategic underwriting and pricing policies. Non-compliance triggers targeted enforcement actions, including dividend repayment orders, distribution suspensions, and pecuniary sanctions calculated against distributed dividends or minimum paid-up capital.
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