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Comoros Insurance Market Analysis: Compliance as a Service
In a bid to promote compliance as a service, Comoros has taken significant steps to develop its insurance market. The island nation’s insurance regulatory landscape is shaped by the Ministry of Finance and the National Insurance Regulatory Authority (NIRA). This article provides an in-depth analysis of the insurance market in Comoros, highlighting key regulations, requirements, and industry practices.
Legislation Overview
The National Insurance Act 2018 is the primary legislation governing the insurance sector in Comoros. The act outlines the regulatory framework for insurance companies, brokers, and intermediaries. NIRA oversees the implementation of the act and enforces compliance with relevant regulations.
Compliant Insurance Regulations
Comoros requires various types of insurance to be compulsory:
- Motor third-party liability insurance
- Aviation liability insurance
- Marine liability insurance
- Professional indemnity insurance
- Social security insurance
- Employers’ liability insurance
- Private healthcare insurance
- Business interruption insurance
- Engineering insurance
- Group life insurance
- Individual life insurance
- Liability insurance
- Personal accident insurance
- Property insurance
- Transit insurance
Non-Admitted Insurance Regulations
Comoros permits non-admitted primary and reinsurance, subject to certain conditions. Non-admitted insurers must obtain a license from NIRA before operating in the market.
Company Registration and Operation
To establish an insurance company in Comoros, the following requirements apply:
- A minimum capital of 100 million KMF (Comorian Francs)
- A license from NIRA
- Compliance with corporate governance regulations
Foreign direct investment is permitted, but independent operations are subject to regulatory approval.
Reserve Requirements
Insurance companies must maintain a minimum solvency margin of 20% and a reserve requirement of 50%. Premium reserves must be withheld for at least six months before being released.
Statutory Return Requirements
Comoros requires insurers to submit annual returns, which include financial statements, actuarial reports, and other relevant information.
Fee Structure
The fee structure in Comoros includes:
- Licensing fees: 500,000 KMF
- Annual fees: 100,000 KMF
- Inspection fees: 50,000 KMF per visit
Taxation
Comoros imposes a tax on insurance premiums of 5%. The tax is levied on the gross premium income of insurers.
Claims Handling
Insurers in Comoros must comply with the National Insurance Act’s claims handling requirements. The act requires insurers to pay claims within 30 days of receiving a valid claim notification.
Intermediary Commission Regulations
The National Insurance Act regulates intermediary commission rates, which are capped at 10% of premium income.
Rating Tariff Regulations
Comoros has a regulated rating tariff system, which is set by NIRA. The tariff includes premiums for various classes of insurance business.
Compliance as a Service
To promote compliance as a service, Comoros has implemented the following measures:
- Regulatory updates and guidance
- Compliance training programs for insurers and intermediaries
- Annual compliance audits and inspections
- Whistleblower protection policies
- Public awareness campaigns on insurance regulations and consumer rights
In conclusion, Comoros has made significant strides in developing its insurance market and promoting compliance as a service. The island nation’s regulatory framework provides a solid foundation for insurers to operate within. By continuing to prioritize compliance and customer protection, Comoros can further develop its insurance sector and provide better services to its citizens.