Mauritius FSC Consults On Code Of Business Conduct For Insurers

by Lorys Charalambous, for LawAndTax-News.com, Cyprus

16 November 2004

Earlier this month, Mauritius's Financial Services Commission launched a consultation on the new draft Code of Business Conduct for Insurers and Intermediaries.

The FSC, which regulates all non-banking financial service providers in the jurisdiction, explained that the Code is designed to define the standards of business conduct and ethical behaviour on behalf of insurers, agents and salespeople, in order to ensure that confidence in the market is maintained and consumer interests are properly safeguarded.

In the draft Code, the Commission observed that:

"The Insurance sector is the most important component in the total non-banking financial sector in Mauritius. Its contribution to the Mauritian economy has grown from 16% in 1998 to 19% in 2002; the industry is well established, with 18 companies offering either single line businesses in the general or long term sector or both of them... With increased economic activities and changes in the Mauritian life style the insurance sector is likely to experience significant growth in the future."

It continued:

"As the regulator for the insurance sector, the Commission has to ensure that high standards of financial soundness and business conduct are met at all times, by all insurers and intermediaries under its supervision. The objective is to ensure consumers are adequately protected from the risks of insolvency or malpractice...that may occur during the course of business; and to maintain confidence in the financial system."

Comment from insurers, consumer associations and other interested parties is invited by November 22.

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