Regulatory Alerts2019-05-30
Regulation on Calculation of Minimum Solvency Margins, Capital Adequacy and Guarantee Fund for Non-Life Insurers
The Central Bank of the Republic of Kosovo issued this regulation to standardize calculation methods for minimum solvency margins, capital adequacy, and guarantee funds across all licensed non-life insurers. It requires insurers to maintain adequate charter and supplementary capital by deducting specified non-liquid assets, applying tiered formulas based on written premiums and incurred claims to determine solvency thresholds. Additionally, the framework mandates quarterly and annual electronic reporting, establishes fixed guarantee fund minimums of 2.2 million or 3.2 million euros depending on risk classes, and reserves Central Bank approval for all guarantee fund investments and related transactions.
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