Skip to main content
Categories
News
Back to News
News | 2021

A2ii Newsflash| The Kingdom of Eswatini issues microinsurance regulations

The Kingdom of Eswatini has issued The Micro Insurance Regulations, 2020, which came into effect on 18 December 2020. The Regulations describe microinsurance products as available, accessible and affordable to low-income persons.

Eswatini has a population of about 1.2 million people, of whom 58.9% live below the poverty line. It is estimated that 72% are not insured. Recently, it has been reported that insurers have been exploring new channels to expand access, such as insurance products sold through Savings and Credit Co-Operative Societies (SACCOs), banks and the Post Office, as well as group products (i.e. church groupings).

The purpose of the legislation is to promote financial inclusion by providing access to insurance to low-income earners. This will enable a majority of the population to manage both personal and corporate risks and be in a position to venture into business which will in turn contribute to the economic development of the country.

- Ncamiso Ntshalintshali, CEO of the Financial Services Regulatory Authority (FSRA)

Licensing and product approval
The Regulations require potential microinsurers to apply for a license in writing to the authority. Capital requirements are lowered for microinsurers, who need a minimum paid up share capital or non-distributable reserves of 400,000 Emalangeni (this is significantly lower than the current capital requirements for traditional insurers of 2 million Emalangeni).

The Registrar must approve microinsurance products before they can be marketed as such. If an insurer or microinsurer applies for the approval of a product as a microinsurance product and they do not receive an objection within 30 days of application, they may begin to offer the product.

Policyholder protection
The Regulations state that policy contract provisions shall be fair and easily understood by policy holders, and that premium rates shall not be unfairly discriminatory.

  • Policyholders have a cooling-off period of 30 days for policy cancellation.
  • Insurers must provide a written policy summary and disclose their claims settlement process, documents required, and expected claims settlement time.
  • Insurers must inform policyholders of claims rejections within 10 days of taking the decision.
  • Insurers must act on complaints within five days of receiving the complaint and required documentation, and a resolution shall be made within 21 working days.

Technology and electronic means
Embracing accessibility and cost reduction, the regulations allow for electronic means of communication in issuing policy documents or whenever a written response is required.

Inclusive insurance developments in the region
Elsewhere in the Sub-Saharan African region, we have seen some interesting inclusive insurance developments – Lesotho is at an advanced stage of developing microinsurance regulations, and South Africa, Mozambique, and Zimbabwe also regulate microinsurance. Mozambique also has a pilot project for Index-based Insurance

To learn more about the latest in inclusive insurance regulations in Sub-Saharan Africa and worldwide, see our Inclusive Insurance Regulations Map  and subscribe to our mailing list.
 

Also in News

11.10.2021

A2ii Newsflash| Ghana’s new insurance law aims to increase insurance penetration and allow for new innovative insurers

more
03.09.2021

A2ii scholarships for the ILO Insurance for Development course for supervisors available

more
21.07.2021

A2ii Newsflash| Request for information on reasons for low claims ratios in microinsurance

more
12.07.2021

Capacity Building for Insurance Supervisors - Leveraging Actuarial Skills

more
01.06.2021

Call for applications - the 3rd Inclusive Insurance Innovation Lab – deadline extended to 18 June 2021

more
17.05.2021

Apply now for the CEET Inclusive Insurance Training Programme: focus on climate change and technology

more
20.04.2021

Press Release | H.M. Queen Máxima of the Netherlands, UNSGSA, will provide a pre-recorded video message for the keynote address for the A2ii-IAIS Public Dialogue on Insurance and the SDGs

more
15.03.2021

Entrevista en vivo en Twitter / Twitter Interview

more
05.03.2021

International Women's Day: #ChooseToChallenge

more
19.02.2021

Oportunidades de beca para el curso en línea "seguros para el desarrollo"

more
04.02.2021

The A2ii launches its interactive inclusive insurance world map

more
18.01.2021

Leadership and Diversity Program for Regulators: Scholarship opportunity by A2ii and the InsuResilience Global Partnership

more
22.12.2020

New interactive tool on A2ii website: Supervisory KPIs Lexicon

more
05.11.2020

A2ii Newsflash | Madagascar: the new Insurance Law for a healthy and inclusive financial services sector

more
26.10.2020

New times. Improved format. Continued commitment.

more
24.09.2020

A2ii Newsflash| Costa Rica Approves Inclusive Insurance Regulations

more
01.09.2020

A2ii Newsflash| National Bank of Ethiopia issues a Directive on Licensing and Supervision of Microinsurance Business

more
27.08.2020

Inclusive Insurance Training for Asian supervisors - last places are available

more
18.08.2020

A2ii scholarship for the ILO Insurance for Development course for supervisors available

more
21.07.2020

A2ii Newsflash| SUSEP Implements a Regulatory Sandbox Model in Brazil

more
01.07.2020

A2ii Newsflash| The Philippines Issues InsurTech Regulatory Sandbox Guidelines

more
30.03.2020

Covid-19 Insurance Supervisory Response Tracker

more
05.02.2020

An opportunity to provide your feedback: The IAIS Emerging Markets and Developing Economies Survey for all IAIS EMDE Members

more
21.01.2020

A2ii Newsflash| The SEC Pakistan Issues Regulatory Sandbox Guidelines

more
Microinsurance Master programme
29.11.2019

A2ii Scholarship for the Microinsurance Master accelerator programme for insurance supervisors

more
12.11.2019

ICP Self-Assessment Tool Launch

more
30.10.2019

Leadership and Diversity Program for Regulators: scholarship opportunity by A2ii and InsuResilience Global Partnership Secretariat

more
15.10.2019

A2ii Newsflash| The SSN Argentina launch their InsurTech Innovation Hub

more
02.10.2019

A2ii Newsflash| Kenya defines micro-insurance and index-based insurance in its primary legislation on insurance services

more
09.09.2019

Deadline for applications extended: The 2nd Inclusive Insurance Innovation Lab

more
04.09.2019

The A2ii releases its decennium publication: 'A2ii: 10 Years On'

more
21.08.2019

Celebrating 10 years of A2ii - #A2ii10

more
20.08.2019

The 2nd Inclusive Insurance Innovation Lab Call for Applications

more
12.07.2019

Watch the recording of the 16th Consultative Forum on Climate and Disaster Risk here!

more
07.05.2019

LIVE STREAMING: 15th Consultative Forum on Inclusive Insurance - Climate and disaster risk: building resilience, bridging the protection gap

more
12.04.2019

RegTech and SupTech: Implications for Supervision – A2ii-IAIS Consultation Call, March 2019

more
09.11.2017

Holistic approach to insurance is key to seeking solutions for smallholder farmers faced with natural disasters

more
06.11.2017

Insurance regulators and providers meet in Peru to seek solutions for smallholder farmers faced with natural disasters

more
01.11.2017

Global Agreement to Enhance Actuarial Skills

more
31.05.2017

Press release: Stakeholders come together to explore agricultural index based insurance as a tool for building resilience of farmers in Africa

more
31.05.2017

Stakeholders come together to explore agricultural index based insurance as a tool for building resilience of farmers in Africa - 10th consultative forum

more
23.02.2017

Insurance supervisors gather for the first Mobile Insurance Conference

more
06.07.2016

Press Release: Access to Insurance Initiative Governing Board announced

more
11.07.2015

A2ii Newsflash | July 2015: India adopts a new IRDA microinsurance regulation

more
11.07.2015

A2ii Newsflash | October 2015: Uganda proposes new microinsurance regulation with reduced minimum capital requirement for microinsurers

more
06.07.2015

Save the date: IAIS-A2ii Consultation Call on "Risk-based Supervision in Inclusive Insurance "

more
28.10.2014

Reminder: Invitation to the 8th IAIS-A2ii Consultation Call on "Formalisation"

more
06.06.2014

Press Release: Policy Seminar and Consultative Forum Kigali

more
05.06.2014

Press Release Policy Seminar and Consultative Forum Kigali

more
12.07.2013

Responsible Finance Forum IV – Consumer Protection in Emerging Insurance Markets

more
11.07.2013

A2ii and IAIS Announce SAPR launch

more
07.11.2012

Press Release: Policy Seminar Tanzania on Access to Insurance

more
09.11.2011

Press Release: Policy Seminar Rio

more
11.07.2009

IAIS Press Release: Insurance Supervisors strengthen framework for sound insurance markets

more