Regulatory Alerts2024-04-30
Regulation on Risk Retention and Reinsurance Coverage Requirements
The Central Bank of the Republic of Kosovo has issued a regulation mandating that all licensed insurers retain no more than 10 percent of their charter capital per insured event and secure full reinsurance coverage for any excess risk. The rule requires insurers to contract with BBB-rated reinsurers, submit a board-approved reinsurance program sixty days before each financial year, and maintain quarterly electronic reports of their risk exposure. It repeals the previous 2016 framework, enforces strict contract conditions to prevent hidden agreements or finite reinsurance, and authorizes the CBK to impose administrative penalties for non-compliance.
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