Regulatory Alerts2016-01-01
Insurance (Reinsurance) Regulations 2016
Governor of the Central Bank of Lesotho issued these regulations to establish comprehensive licensing and operational standards for insurance intermediaries. The rules mandate specific application procedures, a five-year licence validity, mandatory professional indemnity coverage of at least M1 million or 50% of brokerage income, and strict fiduciary handling of premiums with defined remittance timelines. Intermediaries must maintain a M50,000 bank deposit, adhere to fit and proper requirements, and face administrative fines or penalties under the Insurance Act 2014 for non-compliance.
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