Tunisia: Amended insurance law likely to be ready this year
Source: Middle East Insurance Review | Sep 2018
Tunisia’s General Insurance Committee (CGA) is working on a new Insurance Code to be adopted likely this year. The objective of the overhaul of the legislative framework governing the insurance sector is to adapt it to international standards and enhance the strength of the market.
The new draft of the Insurance Code will give the CGA greater power which will allow it to have all the prerogatives necessary to carry out the missions attributed to it under the laws and regulations in force, according to a report in Il Boursa.
In addition, the new Insurance Code will include provisions aimed at ensuring better governance of insurers and setting up technical frameworks for risk management and the assessment of claims.
The new law will also modernise the legal framework for life insurance, which contributes currently only 20% of the total insurance market.
Finally, the new regulatory system aims to strengthen the financial base of insurers. With the insurance industry considered to be a fragmented and undercapitalised sector, the minimum capital requirement will be raised substantially.
Capital requirements
Under this, the minimum required capital for multi-line insurers will be increased from TND10m ($3.7m) to TND50m, whereas for insurers that only practise one category of insurance, the minimum required capital will be increased by TND3m to TND30m.
The Insurance Code has been amended several times in the past, notably in 2002, 2008 and 2014. It was enriched in 2014 by the development of a legal framework for takaful. M
TND1 = $0.36