Amendments to FSC Rules

To maintain our jurisdiction in line with international standards, Rule 12 of the Insurance (Long-Term Insurance Business Solvency) Rules 2007 and Rule 7 of the Insurance (General Insurance Business Solvency) Rules 2007 were amended to clarify that the aggregate value of investments of an insurer in one or more of its related companies shall not exceed 10 per cent of the assets of the insurer.

The amendment Rules also provide that the word "investment", for the purposes of Rule 12 of the Insurance (Long-Term Insurance Business Solvency) Rules 2007 and Rule 7 of the Insurance (General Insurance Business Solvency) Rules 2007, means any kind of investment including investment in the form of receivables, deposits or loans.

Following the coming into operation of the amendment Rules on 1st July 2013, any insurer who does not meet the requirements imposed shall take such measures as may be necessary to comply with them by 30th June 2014.