Regulatory Alerts2017-07-17
Board of Directors Decision No. 22 of 2017 on Investment Limits for Insurance and Takaful Companies
The Insurance Authority Board of Directors issued Decision No. 22 of 2017 to establish specific application rules for the investment limits stipulated in the Financial Regulations for Insurance and Takaful Companies. The decision mandates that companies exceeding asset distribution limits must submit detailed correction plans if they incur deficits in capital or solvency requirements, while allowing unrestricted purchases if solvency remains intact. It further defines associate company investment caps at 20% for domestic and 10% for foreign markets and declares assets outside approved limits unacceptable for solvency calculations.
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