Regulatory Alerts2016-04-28
Regulation on Calculation and Retention of Technical and Mathematical Provisions for Non-Life and Life Insurers
The Central Bank of the Republic of Kosovo mandates that licensed insurers and foreign branches calculate, maintain, and report adequate technical (non-life) and mathematical (life) provisions to cover contractual liabilities. The regulation prescribes specific actuarial methodologies, formulas, and reserve classifications—including unearned premium, outstanding claims (RBNS/IBNR), unexpired risk, and mathematical reserves—while requiring separate accounting for reinsurers' shares. Insurers must submit quarterly and annual reserve reports within thirty days, and the CBK retains authority to demand corrective financial plans or restrict asset utilization if provisions prove insufficient.
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