Regulatory Alerts2018-01-01
Added · Updated
Insurance (Operation of Life Insurance Funds) Directive 2018
The Directive requires life insurers to maintain separate funds for unit-linked and discretionary business, prioritizing policyholder interests over shareholders and mandating that at least 85% of profits from discretionary policies be distributed to policyholders. It establishes specific investment categories and prudential limits, such as a maximum 80% exposure for combined categories like listed debt and equities, and prohibits investments in unlisted infrastructure except through special purpose vehicles. The Registrar may impose monetary penalties of up to K50,000,000 on insurers and K10,000,000 on individuals for violations, with daily fines of K50,000 for continuing breaches.