Regulation on Risk Retention and Reinsurance Coverage Requirements

Based on Article 35, paragraph 1, sub-paragraph 1.1, and Article 65 of Law No. 03/L-209 on the Central Bank of the Republic of Kosovo (Official Gazette of the Republic of Kosovo, No. 77/16 August 2010), amended and supplemented by Law No. 05/L-150 (Official Gazette of the Republic of Kosovo, No. 10/03 April 2017), as well as Article 4, paragraph 3, Article 76, paragraph 6, and Article 77, paragraph 6 of Law No. 05/L-045 on Insurance (Official Gazette of the Republic of Kosovo, No. 38/24 December 2015), the Board of the Central Bank, at its meeting held on 28 February 2025, approved this:

REGULATION FOR THE COMPLETION AND AMENDMENT OF THE REGULATION ON INTERNAL CONTROLS AND INTERNAL AUDIT OF INSURERS

Article 1 Purpose The purpose of this Regulation is to complete and amend the Regulation on Internal Controls and Internal Audit of Insurers, approved by the Board of the Central Bank on 28 April 2016 (hereinafter: the base regulation).

Article 2

1. Paragraph 12 of Article 9 of the base regulation is technically supplemented with point a as follows: a. Members of the internal audit unit must meet the requirements as described below: 1.1. Paragraph 12 of Article 9 of the base regulation, following sub-paragraph iii of point a, is supplemented and amended with point b as follows: b. The head of the internal audit function must: i. meet the criteria set forth in Article 8 of the Regulation on Licensing of Insurers and Branches of Foreign Insurers; ii. be certified in the field of audit by any: 1.1.1. institution accredited in Kosovo for this purpose; 1.1.2. internationally recognized institution; or 1.1.3. relevant institution accredited for this purpose by the competent authority in the country where it was established to provide certification services in the field of audit. iii. be an individual of high ethical and professional reputation with adequate experience in the field of insurance and audit.

Article 3 Transitional Provisions Insurers must comply with the requirements of this Regulation within a period of 1 (one) year from the entry into force of this regulation.

Article 4 Effects and Entry into Force

1. All other provisions of the base regulation remain in force, except for the amended and supplemented provisions of this Regulation which take effect from the entry into force of this regulation.
2. This Regulation is an integral part of the base regulation.
3. This Regulation enters into force on 1 March 2025.

Dr.sc. Bashkim Nurboja Chairman of the Board of the Central Bank of the Republic of Kosovo