Insurance laws Djibouti
In Djibouti, the insurance sector is regulated by the Insurance Directorate at the Ministry of Economy and Finance. The Directorate is responsible for monitoring insurance activities and ensuring that companies comply with the country's laws and regulations. While the Directorate oversees the sector, the final authority for granting or revoking operating licenses rests with the Council of Ministers, which acts on the Directorate's advice.
Here are some key aspects of Djibouti's insurance laws and regulations:
Mandatory Insurance: Certain types of insurance are compulsory in Djibouti, notably motor and cargo insurance.
Foreign Investment: Foreign investors are generally not required to have a local partner, but this rule changes in the insurance industry if the company is registered as a local company rather than a branch of an existing foreign company.
Social Security: Djibouti has a social insurance system that provides various benefits, including disability insurance, which covers medical and surgical care, hospitalization, medicine, and dental care.
Regional Cooperation: Djibouti is a member of the Common Market for Eastern and Southern Africa (COMESA), and as such, it participates in the Yellow Card scheme. This scheme simplifies cross-border travel by eliminating the need for separate insurance policies for each country a driver passes through.
Market Structure: The insurance market in Djibouti is relatively small, with a limited number of insurance companies. This has led to local companies dealing directly with international reinsurers.
Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) Measures: The country has laws and regulations that require insurance companies to identify and verify the identity of their customers and beneficial owners, especially in cases of high-risk transactions.
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