Mauritus To Stiffen Insurance Legislation

by Lorys Charalambous, Tax-News.com, Cyprus

17 March 2005

Further details emerged regarding the new insurance legislation being prepared in Mauritius when Minister for Industry and Financial Services, Sushil Khushiram spoke at an insurance sector reception last week. Mr Kushiram said that the new law will require companies to separate their life and general businesses.

Insurance company capitalisation will be made to reflect risk profiles, while audit committees and independent directors will have a direct responsibility to the Financial Services Commission. Reporting systems will be substantially strengthened, and the FSC will be given additional inspection and supervisory powers.

Last November, the FSC launched a consultation on a new draft Code of Business Conduct for Insurers and Intermediaries. The FSC, which regulates all non-banking financial service providers in the jurisdiction, explained at the time 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.

"The aim of the proposed new insurance legislation is to enhance the regulatory and supervisory framework for the insurance industry and to provide greater protection to policyholders and other beneficiaries," said Mr Kushiram.

Recommended