Governance, Risk and Compliance - The Botswanan Insurance Industry

Governance, Risk and Compliance - The Botswanan Insurance Industry

Summary

The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) regulates and supervises the Botswanan insurance industry. The NBFIRA was established in 2006, after the enactment of the Non-Bank Financial Institutions Regulatory Authority Act 2006. The competence rights of the NBFIRA, its obligations and rights to regulate the insurance industry are stipulated in this Act. The NBFIRA is instrumental in maintaining financial stability, regulating market behavior, combating illegal practices, and protecting consumer interests.

The primary acts governing the insurance industry in Botswana are the Insurance Industry Act 2015, the Insurance Industry Regulations 2019, the International Insurance Act 2005, and the International Insurance Regulations 2007. These acts stipulate provisions for the licensing process, financial requirements, policy terms, and conditions, and penalties for the offenders of provisions. The Insurance Industry Act 2015 and the Insurance Industry Regulations 2019 govern domestic insurance and reinsurance business while the International Insurance Act 2005 and the International Insurance Regulations 2007 govern international insurance business. The NBFIRA provides licenses to insurance entities to enable them to conduct business.

Key Findings -

  • The NBFIRA regulates and supervises the Botswanan insurance industry
  • Motor third-party liability, aviation, and professional indemnity are some of the mandatory insurance classes of insurance in Botswana
  • Composite insurance is not permitted in Botswana. However, life insurance companies are permitted to operate in accident and health insurance business
  • 100% FDI is permitted in the Botswanan insurance industry
  • Non-admitted insurance is prohibited. However, unauthorized insurers can insure risks not covered by local insurers
The report “Governance, Risk and Compliance - The Botswanan Insurance Industry” is the result of extensive research into the insurance regulatory framework in the Botswana. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries.

The report brings together research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.

The report “Governance, Risk and Compliance - The Botswanan Insurance Industry” provides -
  • An overview of the insurance regulatory framework in the Botswana
  • The latest key changes, and changes expected in the country’s insurance regulatory framework
  • Key regulations and market practices related to different types of insurance product in the country
  • Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in the Botswana
  • Key parameters including licensing requirements, permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations
  • Details of the tax and legal systems in the country
The report “Governance, Risk and Compliance - The Botswanan Insurance Industry” enables the user to:
  • Gain insights into the insurance regulatory framework in the Botswana
  • Track the latest regulatory changes, and expected changes impacting the Botswanan insurance industry
  • Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country
  • Understand key regulations and market practices pertaining to various types of insurance product
Scope
  • The report covers details of the insurance regulatory framework in the Botswana.
  • The report contains details of the rules and regulations governing insurance products and insurance entities.
  • The report lists and analyzes key trends and developments pertaining to the country’s insurance regulatory framework.
  • The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
  • The report provides details of taxation imposed on insurance products and insurance companies.
Reasons to buy
  • Gain insights into the insurance regulatory framework in the Botswana.
  • Track the latest regulatory changes, and expected changes impacting the Botswanan insurance industry.
  • Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
  • Understand key regulations and market practices pertaining to various types of insurance product."


1 Introduction
1.1 What is this Report About?
1.2 Definitions
2 Governance, Risk and Compliance
2.1 Legislation Overview and Historical Evolution
2.2 Latest Changes in Regulation
2.3 Legislation and Market Practice by Type of Insurance
2.3.1 Life insurance
2.3.2 Property insurance
2.3.3 Motor insurance
2.3.4 Liability insurance
2.3.5 Marine, aviation and transit insurance
2.3.6 Personal accident and health insurance
2.4 Compulsory Insurance
2.4.1 Workers’ compensation
2.4.2 Motor third-party liability insurance
2.4.3 Professional indemnity insurance
2.4.4 Aviation liability insurance
2.5 Supervision and Control
2.5.1 International Association of Insurance Supervisors
2.5.2 Non-Bank Financial Institutions Regulatory Authority
2.6 Non-Admitted Insurance Regulations
2.6.1 Overview
2.6.2 Intermediaries
2.6.3 Market practices
2.6.4 Fines and Penalties
2.7 Company Registration and Operations
2.7.1 Type of insurance organization
2.7.2 Establishing a local company
2.7.3 Foreign ownership
2.7.4 Types of license
2.7.5 Capital requirements
2.7.6 Solvency margin
2.7.7 Reserve requirements
2.7.8 Investment regulations
2.7.9 Statutory return requirements
2.7.10 Fee structure
2.8 Taxation
2.8.1 Insurance premium or policy taxation
2.8.2 Withholding taxes on premium paid overseas
2.8.3 Corporate tax
2.8.4 VAT
2.8.5 Captives
2.9 Legal System
2.9.1 Introduction
2.9.2 Access to court
2.9.3 Alternative dispute resolution (ADR)
3 Appendix
3.1 Methodology
3.2 Contact Timetric
3.3 About Timetric
3.4 Timetric’s Services
3.5 Disclaimer
List of Tables
Table 1: Insurance Industry Definitions
Table 2: Botswana- Insurance Regulatory Framework Key Features
Table 3: Botswana - Life Insurance Regulatory Framework
Table 4: Botswana - Property Insurance Regulatory Framework
Table 5: Botswana- Motor Insurance Regulatory Framework
Table 6: Botswana - Liability Insurance Regulatory Framework
Table 7: Botswana - Corporate Tax Rates for the Financial Year 2019
List of Figures
Figure 1: Botswana - Insurance Supervision and Control at Various Levels
Figure 2: Botswana - Insurance Regulatory Frameworks for Company Registration and Operation

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook