Regulatory Alerts2011-07-15
Insurance Risk Management Framework for Insurance Companies Directive, 2011
Issued by the Malawi Registrar of Financial Institutions under the Insurance Act, 2010, this directive mandates all licensed insurance companies and license applicants to establish a comprehensive Risk Management Framework tailored to their operational scale and complexity. Insurers must appoint a dedicated Risk Management Function, develop and annually review a Board-approved Risk Management Strategy covering operational, financial, and strategic risks, and submit a signed risk declaration alongside their audited annual statements. Non-compliance triggers administrative penalties up to K500,000 and regulatory sanctions including dividend prohibitions, operational suspensions, or license cancellation to ensure prudent policyholder protection and corporate governance.