Insurance laws Malawi
Malawi's insurance industry is governed by the Insurance Act (Cap. 47:01), which was enacted in 2010 and commenced on 1 October 2010. This Act provides a comprehensive legal framework for the regulation and supervision of insurance activities in the country, aiming to protect policyholders and ensure the soundness of the insurance market.
🏛️ Regulatory Authority
The Registrar of Financial Institutions is the primary regulatory authority overseeing the insurance sector in Malawi The Registrar is responsible for licensing and supervising insurance entities, ensuring compliance with the Insurance Act and other relevant financial services laws The supervision involves both off-site surveillance, including the review of quarterly statutory returns, and on-site examinations to assess risk management practices and compliance
đź“ś Key Provisions of the Insurance Act
Licensing Requirements No person shall carry on insurance business in Malawi unless licensed as an insurer in the appropriate category (life or general insurance. The Registrar may grant a license if the applicant meets specific criteria, including financial stability and sound business plan.
Categories of Insurance Insurance business in Malawi is categorized into life and general insuranc. Each category may be further divided into classes and sub-classes as determined by the Registra.
Solvency Margin Insurers are required to maintain a margin of solvency sufficient to carry on their business, as specified in the Registrar’s directive.
Claims Settlement Insurers must settle claims arising from policies no later than fourteen days after the signing of a claim discharge certificat.
Deposit of Securities Insurers are required to deposit approved securities with the Registrar, which may be realized to meet liabilities in case of insolvenc.
Foreign Currency Transactions Insurance contracts must be quoted in the currency of Malawi unless approved by the exchange control authoritie.
🔄 Recent Development
In 2024, Malawi passed a new Insurance Act of 2024, which repeals and replaces the previous At The new legislation aims to address emerging issues in the insurance industry, enhance transparency, and protect policyholdes it applies to insurers, insurance brokers, agents, loss assessors, adjusters, and claims settling agents, with provisions for revocation of licenses in cases of non-compliane.
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