Regulatory Alerts2016-12-29
Regulation on Investment of Assets Covering Technical and Mathematical Provisions and Charter Capital for Insurers
The Central Bank of the Republic of Kosovo issued this regulation to standardize investment categories, limits, and risk management for assets covering technical and mathematical provisions as well as charter capital across all licensed domestic and foreign insurers. Insurers must allocate their assets across specified classes such as euro deposits, government bonds, real estate, and reinsurance receivables while adhering to strict percentage caps per asset type and maintaining a minimum 10 percent cash reserve in the central bank. Compliance requires establishing an Investment Management Committee, maintaining a board-approved written investment policy with quarterly reporting, securing qualified custodians for foreign holdings, and meeting phased transitional targets reaching full 100 percent asset coverage by March 2019, with violations subject to administrative penalties.