Insurance laws Cape Verde
The insurance legal framework in Cape Verde is regulated and supervised by the Banco de Cabo Verde (BCV), the country's central bank. The BCV is responsible for establishing the prudential, accounting, and financial rules that insurance and reinsurance companies, as well as insurance brokers, must follow to operate in the financial sector.
Key aspects of insurance law in Cape Verde include:
Regulatory Body: The Banco de Cabo Verde is the main regulator and supervisor of the insurance sector, ensuring the financial stability and compliance of all entities.
Compulsory Insurance: As in many countries, certain types of insurance are mandatory in Cape Verde. The most prominent example is motor third-party liability insurance, which is compulsory for all vehicle owners. The Banco de Cabo Verde has an Automobile Guarantee Fund that promotes awareness of this mandatory insurance and compensates victims in cases where the at-fault driver is uninsured.
Licensing Requirements: To operate in Cape Verde, insurance companies and intermediaries must obtain a license from the BCV. This involves meeting specific access and registration requirements, which include minimum capital requirements.
Market Structure: The insurance market in Cape Verde is relatively small but growing, with an emphasis on general insurance (such as motor and property) and, to a lesser extent, life insurance. The regulatory framework addresses the establishment, operation, and winding-up of insurance entities.
Legislation: The insurance sector is governed by national legislation that is in line with international standards. The regulatory framework covers various aspects of insurance, including licensing, solvency, and investment regulations.
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