Botswana Insurance Industry – Governance, Risk and Compliance
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The Botswana insurance industry report is the result of extensive research into the insurance regulatory framework in the country. It provides a detailed analysis of the insurance regulations for life, property, motor, liability, personal accident & health, marine, aviation, and transit insurance.
The report also specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. It also gives insurers access to information on prevailing insurance regulations, recent and upcoming changes in the regulatory framework, taxation, and legal system in the country. Furthermore, the report includes the scope of non-admitted insurance in the country.
What are the market dynamics in the Botswanan insurance industry?
The Non-Bank Financial Institutions Regulatory Authority Act 2006 established the NBFIRA. This followed the government’s Carmichael Consulting Report, which recommended the establishment of a single independent Non-Bank Financial Institutions (NBFI) regulator. The act grants NBFIRA the mandate to regulate and enforce compliance within the NBFI sector to safeguard the stability, fairness, and efficiency of the non-bank financial sector.
What are the types of licenses issued in the Botswanan insurance industry?
The different types of insurance licenses issued in the Botswanan insurance industry are long-term domestic insurance business license, domestic general insurance business license, long-term foreign insurance business license, foreign general insurance business license, composite insurance license, reinsurers license, and license for intermediaries.
Long-term domestic insurance business license in Botswana
Long-term domestic insurance business offers five types of insurance classes: life insurance, disability insurance, health insurance, fund business, and sinking fund business.
Domestic general insurance business license in Botswana
Domestic general insurance business offers nine types of insurance classes: accident insurance, engineering insurance, health insurance, property insurance, guarantee insurance, liability insurance, motor insurance, transportation insurance, and miscellaneous insurance.
Long-term foreign insurance business license in Botswana
Long-term foreign insurance business offers only one insurance class, i.e., linked long-term insurance.
Foreign general insurance business license in Botswana
The type of insurance classes offered by foreign general insurance businesses is marine insurance, aviation insurance, transit insurance, property insurance, motor insurance, pecuniary loss insurance, liability insurance, credit insurance, suretyship insurance, etc.
Composite insurance license in Botswana
Section 5(4) of the insurance act, 2015 states that composite insurance is not permitted. However, according to Section 37 (3) of the Act, insurers operating a long-term business are permitted to operate in accident and health insurance businesses. Section 5(5) of the act prohibits general insurers from selling any survival benefit or any linked policies. Moreover, section 6 of the act prohibits insurers from carrying out reinsurance business.
Reinsurers license in Botswana
Section 6 (1) states that insurers are not permitted to reinsure the risk of other insurers, and it is mandatory to obtain a reinsurance license from the NBFIRA to conduct a reinsurance business. Furthermore, licensed reinsurers are permitted to conduct all classes of reinsurance activities under a single license.
License for intermediaries in Botswana
Section 76 of the Act mandates individuals to obtain a license from the NBFIRA to operate as an insurance agent or broker while Section 87 stipulates that insurance agents are allowed to render services to only one general insurer and one long-term insurer.
The Botswanan insurance industry, by license type
For more license type insights, download a free report sample
Which other associations oversee the Botswanan insurance industry?
The key association that oversees the Botswanan insurance industry is the International Association of Insurance Supervisors (IAIS).
International Association of Insurance Supervisors
The IAIS is a membership-driven global organization that represents insurance regulators and supervisors of more than 200 jurisdictions in over 140 countries. The IAIS formulates and issues various global insurance principles, standards, and guidance, provides training and support on issues related to insurance supervision, and organizes meetings and seminars for insurance supervisors. It works closely with other financial sector standard-setting bodies and international organizations to promote financial stability.
The primary objectives of the IAIS are to promote effective and globally consistent supervision of the insurance industry to develop and maintain fair, safe, and stable insurance operations for the benefit and protection of policyholders, and to contribute to global financial stability.
Market report scope
Key license types | Long-Term Domestic Insurance Business License, Domestic General Insurance Business License, Long-Term Foreign Insurance Business License, Foreign General Insurance Business License, Composite Insurance License, Reinsurers License, and License for Intermediaries |
Key associations | International Association of Insurance Supervisors (IAIS) |
Scope
- The report covers details of the insurance regulatory framework in 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 about the country’s insurance regulatory framework.
- The report analyzes the rules and regulations about 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
- Provides FAQ-style analytical insights comprising 129 knowledge elements on insurance compliance applicable to the country
- Gain insights into the insurance regulatory framework in 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 about various types of insurance products.
Table of Contents
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Frequently asked questions
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What are the key license types in the Botswanan insurance industry?
The key license types issued in the insurance industry in Botswana are long-term domestic insurance business license, domestic general insurance business license, long-term foreign insurance business license, foreign general insurance business license, composite insurance license, reinsurers license, and license for intermediaries.
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Which are the key associations overseeing the Botswanan insurance industry?
The key association overseeing the insurance industry in Botswana is the International Association of Insurance Supervisors (IAIS).
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