Other Sections

Supervision

The Registrar is committed to conducting ongoing supervision of the insurance market to ensure that insurance entities operate fairly, efficiently, and transparently, with the overarching goal of safeguarding the interests of policyholders and the general public. This supervision encompasses the monitoring of insurance entities' risk profiles, as well as scrutinizing operational and compliance aspects to detect areas of heightened risk, non-compliance, and the effectiveness of risk mitigation measures. In cases of non-compliance or other adverse developments, appropriate enforcement actions are taken.

The supervisory approach applied to insurance entities is a balanced combination of both compliance-based and risk-based methods. It involves off-site surveillance, facilitated by the submission of statutory returns on a quarterly basis through the Bank Supervision Application (BSA). Additionally, on-site examinations of insurance entities are conducted periodically in accordance with established on-site examination plans.

Furthermore, the Registrar is an esteemed member of the International Association of Insurance Supervisors (IAIS), aligning the regulatory standards with international benchmarks as set forth by IAIS standards. This alignment ensures that regulatory practices in Malawi are in sync with global best practices in the insurance sector.

Off-site surveillance of insurance entities involves:

  1. quarterly review and analysis of statutory returns to evaluate financial condition and performance of insurance market players.
  2. market intelligence on developments in the insurance sector as and when events occur

On-site examination

On-site examination of insurance market players involves::

  1. assessing the level of risks inherent to insurance entities ;
  2. evaluating effectiveness of risk management system and internal controls in identification, measurement, monitoring, and controlling of risks inherent to the insurance entities;
  3. determination of residual risks faced by insurance entities; and
  4. assessing the insurance entities’ compliance with financial service laws

Types of on-site examinations include::

  1. routine examination: carried out for every licensee as per examination planning cycle which may be full scope - covering all risk areas or targeted on specific areas
  2. ad hoc: triggered by an adverse event within the institution or market; or
  3. follow up: conducted to ascertain implementation of recommendations from a routine or ad hoc on-site examination.