Regulatory Alerts2016-12-29
Regulation on Sale of Compulsory Motor Liability Insurance and Management of Insurers' Expenses
The Central Bank of the Republic of Kosovo has issued a regulation establishing commission and expense caps for compulsory motor liability insurance, limiting broker commissions to 10 percent of sales and point-of-sale expenses to 12 percent of premiums. Insurers must maintain at least 65 percent of collected premiums in a dedicated bank account to cover damages and broker payments, while allowing up to 35 percent for operational costs. The regulation mandates monthly electronic reporting to the central bank and outlines progressive administrative fines, policy restrictions, and executive removal measures for non-compliance.
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