Regulatory Alerts2025-04-02
Regulation Amending and Supplementing the Minimum Solvency, Capital Adequacy and Guarantee Fund Calculation for Non-Life Insurers
The Board of the Central Bank of the Republic of Kosovo has issued a regulation amending and supplementing the 2019 framework governing solvency, capital adequacy, and guarantee fund calculations for non-life insurers. The amendment introduces precise definitions and tiered deduction percentages for repossessed immovable and movable assets based on holding periods, establishes a 75 percent core capital cap for property deductions (extendable to 100 percent with prior approval), and incorporates IAS 16, IFRS 16, and IAS 40 valuation standards. Insurers must adapt existing capital structures to these updated rules by 31 March 2026, with the regulation officially taking effect on 1 July 2025.
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