Regulatory Alerts2019-01-01
Insurance (Reserving Requirements for General Insurers and Reinsurers) Directive, 2019
The Registrar of Financial Institutions issued this Directive to mandate licensed general insurers and reinsurers under the Insurance Act to establish and maintain adequate technical reserves. Companies must implement board-approved reserving policies, calculate unexpired risk, outstanding claims, and incurred-but-not-reported reserves using specified actuarial methods, and submit annual valuation reports signed by an actuary. Non-compliance with reserve adequacy, methodology approvals, or reporting deadlines triggers administrative fines ranging from five to ten million Kwacha plus percentage-based penalties for understated reserves.
Share