Regulatory Alerts2017-01-01
Insurance (Minimum Capital and Solvency Requirements for Life Insurers) Directive, 2017
Issued by Malawi’s Registrar of Financial Institutions, the Directive mandates minimum capital and solvency thresholds for licensed life insurers, requiring K1 billion in paid-up capital for multi-class operators and K300 million for single-class entities. It obligates appointed actuaries to calculate and certify solvency ratios of at least 120 percent for the insurer as a whole and 100 percent per fund, while restricting bonus and dividend distributions until adequate solvency buffers are maintained. Existing life insurers must achieve full compliance within two years through phased capital adjustments, with the Registrar empowered to impose administrative penalties or enforce supervisory interventions for non-compliance.
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