Insurance laws Solomon Islands
The insurance sector in the Solomon Islands is governed by a structured regulatory framework aimed at ensuring financial stability, consumer protection, and market development.
📜 Key Legislation
Insurance Act (Cap 191):This foundational legislation regulates the operations of insurance companies and intermediaries in the Solomon Islands. It outlines requirements for licensing, capital adequacy, solvency, and the management of security deposits. For instance, insurers are mandated to maintain a security deposit equal to 10% of their paid-up capital, which is held in a commercial bank approved by the regulatory authority
Financial Institutions Act (FIA) 1998:While primarily focused on financial institutions, the FIA provides a supervisory umbrella for the financial sector, addressing issues such as licensing, capital requirements, and the roles of external auditors
🏛️ Regulatory Authority The Central Bank of Solomon Islands (CBSI) serves as the primary regulatory body overseeing the insurance secto. Under the CBSI, the Controller of Insurance (COI) is responsible for licensing and supervising insurance companies and intermediarie. The CBSI has issued various directives to ensure market conduct, including guidelines on complaints management, market conduct for brokers, and reinsurance strategie.
🛡️ Consumer Protectio
Consumer protection is a critical aspect of the insurance regulatory framework in the Solomon Islans The CBSI has implemented directives to ensure that insurers and intermediaries establish effective complaints management mechanisms, ensuring that customer complaints are promptly investigated and resolved satisfactoriy.
Additionally, the CBSI is in the process of drafting a new insurance bill, incorporating input from nationwide consultatios The aim is to create an inclusive insurance framework that caters to the needs of all Solomon Islanders, including those in rural areas.
📈 Market Overview
*Insurance Companies: The Solomon Islands' insurance market comprises both general and life insurers, with notable players including Capital Insurance Solomon Islands Limited, Tower New Zealand Insurance Limited, and QBE (International) Insurance Limied
*Insurance Brokers: Licensed brokers such as Pacific Insurance Brokers Limited and United Risk Services Limited facilitate the distribution of insurance products
*Compulsory Insurance: Motor third-party liability insurance is mandatory in the Solomon Islands, reflecting the country's commitment to ensuring basic insurance coverage for its citizens.
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