Regulatory Alerts2025-01-01
Insurance (Minimum Capital and Solvency Requirements for Life Insurers) Directive 2025
Issued by the Registrar of Financial Institutions under the Insurance Act, 2025, this Directive establishes comprehensive minimum capital and solvency frameworks for life insurers. It mandates a minimum 100% solvency ratio, sets fixed core capital thresholds of K1.8 billion for multi-class and K800 million for single-class operations, and defines precise calculation methodologies for core capital, risk charges, and adjusted assets. The Directive obligates boards to conduct annual actuarial assessments, submit quarterly capital adequacy reports, restrict dividend distributions that breach solvency thresholds, and adhere to an 18-month transitional compliance period alongside a tiered supervisory response framework.
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