Regulatory Alerts2016-01-01
Insurance (Capital, Solvency and Reserves Requirements for Insurers) Regulations 2016
Issued by the Governor of the Central Bank of Lesotho under the Insurance Act 2014, these regulations establish comprehensive capital, solvency, and reserves requirements for licensed short-term and long-term insurers operating in Lesotho. The framework mandates a minimum share capital of M4,000,000 and prescribes detailed investment admissibility rules, concentration limits, and specific reserving methodologies for unearned premiums, unexpired risks, and outstanding claims. Insurers must continuously calculate and monitor their required and available solvency margins using prescribed risk factors, submit regular compliance reports to the Commissioner, and maintain a minimum solvency ratio to ensure financial stability.
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