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Compliance vs Regulations in Timor’s Insurance Industry

The insurance industry in Timor-Leste is governed by a complex web of regulations and compliance requirements. In this article, we will delve into the key regulators, compulsory insurances, company registration and operation, taxation policies, and legal system that shape the industry.

Key Regulators

The Central Bank of Timor-Leste (BCTL) is the primary regulator of the insurance industry in Timor-Leste. Established in 2005, the BCTL is responsible for ensuring the stability and efficient functioning of insurance companies and intermediaries.

Compulsory Insurances

In Timor-Leste, there are several compulsory insurances that all insurers must provide to their clients. These include:

  • Motor third-party liability insurance
  • Professional indemnity insurance
  • Social security insurance

Company Registration and Operation

To operate in the country, insurers must obtain a license from the BCTL. Intermediaries must also obtain authorization from the BCTL to mediate insurance products. Reinsurers are exempt from this requirement.

Taxation

The Timor-Leste insurance industry is subject to several taxes, including:

  • Tax on insurance premiums
  • Corporate income tax (standard rate: 10%)
  • Corporate capital gains tax
  • Value-added tax

Timor-Leste’s legal system is based on Portuguese and Indonesian law, with some influence from customary law. The country has a civil law system, with a Supreme Court as the highest judicial authority.

Key Highlights

  • Provides FAQ-style analytical insights comprising 129 knowledge elements on insurance compliance applicable to Timor-Leste
  • Gain insights into the insurance regulatory framework in Timor-Leste
  • Track the latest regulatory changes and expected changes impacting the Timor-Leste insurance industry
  • Gain detailed information about the key regulations governing the country’s establishment and operation of insurance entities
  • Understand key regulations and market practices pertaining to various types of insurance products

Reasons to Buy

This report provides valuable insights into the compliance requirements for the insurance industry in Timor-Leste, helping insurers navigate the complex regulatory landscape and stay ahead of the competition.