Insurance laws Eswatini
The insurance industry in Eswatini is primarily governed by the Insurance Act of 2005, which provides the regulatory and supervisory framework for the sector. This act, along with other key pieces of legislation, establishes the rules for insurers, intermediaries, and policyholders.
Key aspects of Eswatini's insurance laws include:
1. Regulatory and Supervisory Body:
The Financial Services Regulatory Authority (FSRA) is the primary body responsible for regulating and supervising all non-bank financial institutions in Eswatini, including insurers.
The FSRA's mandate, as defined by the Financial Services Regulatory Authority Act of 2010, is to foster the stability of the financial system, the safety and soundness of financial service providers, and to ensure the highest standards of conduct.
2. Licensing and Operations:
All legal entities conducting insurance business in Eswatini, including insurers, brokers, and agents, must be licensed by the FSRA.
The Insurance Act of 2005 sets out the specific qualifying requirements for registration and the procedures for obtaining a license.
The law prohibits "composite insurance," meaning that a single entity cannot offer both long-term (life) and short-term (non-life) insurance.
3. Consumer Protection and Policyholder Rights:
Eswatini's legal framework includes provisions for protecting policyholders. The Insurance Act of 2005 addresses issues such as misrepresentation and the insurer's responsibility for the actions of its agents.
The Ombudsman of Financial Services (OFS) acts as a dispute resolution body for consumers, handling complaints related to insurance, retirement funds, and other financial services. Consumers must first lodge a complaint with their financial services provider before approaching the OFS.
4. Compulsory Insurance:
Certain types of insurance are compulsory in Eswatini. These include:
Motor vehicle third-party liability insurance.
Professional indemnity insurance for insurance intermediaries.
5. Other Relevant Legislation:
Several other laws also impact the insurance sector in Eswatini, including:
The Retirement Funds Act of 2005, which works in conjunction with the Insurance Act.
The Money Laundering and Financing of Terrorism (Prevention) Act of 2011, which imposes obligations on insurers to combat financial crime.
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