Insurance laws Angola
The insurance legal framework in Angola has recently undergone a significant modernization, with a new law on insurance and reinsurance activity being published in 2022. The main regulatory and supervisory body for the sector is the Angolan Agency of Regulation and Supervision of Insurance (ARSEG), which operates under the Ministry of Finance.
Key Legislation and Regulatory Body
Law No. 18/22 of 7 July (Law on Insurance and Reinsurance Activity): This is the cornerstone of the modern Angolan insurance sector. It replaced previous legislation and is aimed at consolidating and bringing dynamism to the market. The law covers the conditions for accessing and exercising insurance and reinsurance activity, the authorization process, and other key aspects.
Law No. 6/24 of 3 June (Insurance Mediation and Brokerage Law): This law specifically regulates the activities of insurance intermediaries, updating the rules to promote fair competition and protect consumers. It also allows financial institutions to engage in insurance intermediation, with some restrictions.
ARSEG (Agência Angolana de Regulação e Supervisão de Seguros): ARSEG is the specialized body responsible for the regulation, supervision, inspection, and monitoring of all insurance, reinsurance, pension funds, and mediation activities in Angola. It is responsible for licensing companies, ensuring their financial stability, and promoting a sound and transparent market.
Compulsory Insurance
Angola mandates several types of insurance to protect the public and ensure financial responsibility. These include:
Motor Third-Party Liability Insurance: This is a legal requirement for all motor vehicles. It covers bodily injury, death, and property damage to third parties in an accident.
Workers' Compensation Insurance: Employers are required to provide this insurance for their employees to cover work-related accidents and occupational diseases.
Aviation Liability Insurance: This is mandatory for civil aviation operations.
Marine Liability Insurance: Required for maritime activities.
Professional Indemnity Insurance: Certain professions are required to have this type of insurance to cover claims arising from professional errors or negligence.
Social Security Insurance: As is common in many countries, this is a mandatory contribution system for employers and employees.
It's worth noting that while there are a significant number of mandatory insurance policies (around 26, according to recent reports), ARSEG has stated that its priority is to ensure these existing policies are effectively regulated and implemented, rather than introducing new ones at this time.
Voluntary Insurance
Beyond the compulsory schemes, the Angolan market offers a variety of voluntary insurance products, including:
Life Insurance: Provides financial security to a policyholder's beneficiaries upon their death.
General Insurance: This includes a wide range of non-life products, such as:
Home Insurance: To protect residential properties and their contents against risks like fire and theft.
Casco Insurance: Optional car insurance that covers damage to the insured's own vehicle.
Travel Insurance: Provides coverage for medical emergencies and other unforeseen events while traveling.
Consumer Protection
ARSEG is tasked with safeguarding consumer rights. The new legal framework includes provisions to enhance consumer protection and promote healthy competition within the market. Non-admitted insurance (insurance from a non-licensed foreign company) is not permitted in Angola.
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