The Mozambican government has decided to almost triple the minimum capital to set up insurance companies to 97 million meticais (US$1.6 million), the spokeswoman for the Council of Ministers and deputy minister of Culture, Ana Comoana said.
Comoana also said that the decision is justified by the need to provide greater solidity and financial robustness to the operators in the sector and safeguard the interests of the insured parties and added that 33 million meticais was the previous minimum capital.
Comoana added that the new amount decided by the government is also intended to guarantee compensation to users of these services is provided in a timely manner, to strengthen the confidence of the insured parties and to enable the operators to take on big risks.
She added that this update also covers the establishment fund required for insurance and reinsurance mediation companies, according to Mozambican newspaper Notícias.
“This measure affects people proposing to set up insurance companies. For those that are already operating the decree stipulates a period of three years to conform and adjust their capital to the new reality,” she said.
The insurance sector in the country is supervised and monitored by the Insurance Supervision Institute of Mozambique (ISSM), which includes the area of reinsurance, pension funds and insurance management and mediation agencies.
Figures from the ISSM show that there are currently 20 insurance companies, one micro-insurance company, six pension fund management companies, 77 insurance brokers and two reinsurance brokers licensed and active in Mozambique. (macauhub)