Insurance laws Madagascar
Madagascar's insurance landscape is governed by a comprehensive legal framework, primarily centered around the Insurance Law, 2020 (Law No. 2020-005 of September 1st, 2020). This law replaced earlier legislation and aims to align Madagascar's insurance sector with international standards.
Here's a breakdown of key aspects:
1. Regulatory Body:
The primary regulatory and supervisory authority for the insurance industry in Madagascar is the Commission de Supervision Bancaire et Financière (CSBF). The CSBF is responsible for:
Issuing licenses to insurance and reinsurance companies and intermediaries.
Organizing and conducting on-site inspections of insurance companies.
Ensuring compliance with prevailing insurance regulations.
2. Key Legislation:
Insurance Law, 2020 (Law No. 2020-005): This is the overarching legislation that covers all types of insurance operations, including maritime insurance, operations of insurance companies, insurance contracts, and agents. It also defines provisions for microinsurance, though specific decrees to operationalize these are still in progress.
Earlier legislation, such as Law 13 of August 2, 1999 (Code des assurances), had liberalized the insurance sector after a period of state monopoly. The 2020 law builds upon and amends these previous frameworks.
Décret aux operations d'assurances, Décret 1,120 of 2001 (controle d'état et le cadre institutionnel du Secteur des assurances) and Décret 1,121 of 2001 (régime juridique et financier des enterprises d'assurances) provide further implementation details.
3. Compulsory Insurances:
Some key compulsory insurances in Madagascar include:
Motor Third-Party Liability Insurance
Marine Liability Insurance
Professional Indemnity Insurance
Social Security Insurance
Engineering Insurance
4. Company Registration and Operation:
A license from the CSBF is mandatory for both insurers and reinsurers to operate in Madagascar.
Natural persons or legal entities also need prior authorization from the CSBF to act as insurance intermediaries.
Minimum capital requirements are in place for different categories of insurance companies (e.g., general insurance, life and annuity, welfare associations).
Composite insurance (offering both life and non-life insurance) is permitted.
5. Non-Admitted Insurance and Reinsurance:
Generally, non-admitted insurance is not permitted in Madagascar.
However, reinsurers can operate without obtaining a license on a cross-border basis.
6. Taxation:
Taxes are imposed on insurance premiums, and insurance companies are also subject to Corporate Income Tax, Corporate Capital Gains Tax, and Value Added Tax.
7. Foreign Investment:
While there are no general restrictions on foreign ownership in the insurance sector, certain areas like land ownership have specific rules. Foreign-controlled companies can purchase land if they obtain prior authorization and the land serves the company's purpose.
8. Market Overview:
The Malagasy insurance market is relatively small with low penetration. Efforts are ongoing to develop the inclusive insurance sector, including microinsurance, as outlined in the National Financial Inclusion Strategy.
It's worth noting that the legal landscape can evolve, and it's always advisable to consult official sources or legal professionals for the most up-to-date and specific information.
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