Regulatory Alerts2020-02-01
Setting the Interest Rate for Life Insurance Contracts
The Central Bank of the Republic of Guinea issued Instruction N°I/07/19/REA, setting the maximum interest rate for life insurance contracts at 5%. Exceptions apply to immediate life annuity contracts for individuals aged 65 or older and single-premium life and capitalization contracts with a maximum duration of ten years, allowing higher interest rates if corresponding assets are isolated and yield at least one-third more than the tariff rate. If the yield from new investments for these exceptional contracts falls below the tariff rate plus 33%, the contracts must no longer be offered to the public.
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