Regulatory Alerts2020-03-05
Added · Updated
Notice 101 Maintenance of Insurance Funds
Licensed insurers must establish and maintain insurance funds under section 17 of the Insurance Act, though exemptions are available for small offshore portfolios. Insurers are required to properly apportion common expenses, settle inter-fund payments within three months, and maintain records that clearly identify assets for each fund. The PPF levy may be included as an attributable expense, capped by a formula based on average levy rates and protected liabilities or gross premium income. Asset switching between funds is restricted to necessary cases, requiring prior Authority approval for real estate, written notification within 21 days for all switches, and valuation in accordance with specific regulations and actuary certification for direct life insurers.