Regulatory Alerts2024-01-01
Insurance (General Insurance Business Solvency) Rules 2024
The Financial Services Commission has issued the Insurance (General Insurance Business Solvency) Rules 2024 to establish comprehensive solvency margin and capital requirement standards for general insurance businesses. The Rules mandate a minimum capital requirement of 100% and a target capital ratio of at least 150%, while specifying detailed valuation methods for assets and liabilities, investment concentration limits, catastrophe provisions, and reinsurance ceded charges. Insurers must continuously maintain these standards, submit contingency plans to the Commission if their capital ratio falls below the target, and apply newly defined capital factors from the accompanying schedules effective 9 September 2024.
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