Regulatory Alerts2025-01-01
Guidelines on Pricing of Motor Insurance Products by Insurers, 2025
The Registrar of Financial Institutions requires Malawian insurers to implement scientific premium rating models that calculate motor insurance rates based on vehicle characteristics, claims history, and driving records. These rates must adequately cover claims costs, reinsurance, commissions, levies, management expenses, and profit while minimizing cross-subsidization and unfair discrimination. The guideline mandates triennial model reviews, board-approved annual rate guides with supporting rationale, CEO oversight of underwriter compliance, and exception reports for policies priced below minimum thresholds.
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