Regulatory Alerts2025-01-01
The Captive Insurance (Captive Insurance Business) (Amendment) Rules 2025
The Financial Services Commission has promulgated the Captive Insurance (Captive Insurance Business) (Amendment) Rules 2025 to align captive insurer regulations with international accounting standards by mandating IFRS 17 compliance and introducing precise definitions for contractual service margins, fulfilment cash flows, and risk adjustments. The revised rules update capital adequacy frameworks by permitting contractual service margins in available capital, requiring adequate technical provisions for incurred and remaining coverage liabilities, and enforcing substantive operational requirements including qualified personnel and proportionate expenditure. Furthermore, the amended schedule establishes standardized asset capital risk margins, underwriting capital calculations based on premiums and claims, and acceptable credit rating tiers, with full implementation scheduled for 29 September 2025.