Africa-Press – Mozambique. The insurance sector in Mozambique generated approximately 22.5 billion meticais (€300.2 million) in 2024, driven by the entry of new operators, according to data from a central bank report consulted by Lusa.
According to the Bank of Mozambique’s report on the insurance sector’s performance, this represents an increase of 3.2% (compared to 2023), “reflecting not only the increase in business volume, but also the expansion in the number of operators in the market, which now has 20 insurance companies”.
“In 2024, in terms of results, the insurance sector represented around 5.0% of the weight of the main players in the financial system, above the 3.7% observed in 2023. Additionally, from 2020 to 2024, the level of performance of the insurance sector in financial activity reduced its contribution, going from 11.22% to around 5.0%,” reads the central bank’s report on financial stability, relating to last year.
The Mozambican government will create the Insurance and Pension Funds Supervisory Authority of Mozambique (ASFPM), complying with the recommendations on money laundering of the Financial Action Task Force (FATF) to exit the ‘Grey List’.
The decision was taken in an ordinary session of the Council of Ministers on June 11, with the bill creating the ASFPM being considered and approved, to be submitted by the government to the Assembly of the Republic, according to the cabinet.
The proposed law involves “dissolving” the Insurance Supervision Institute of Mozambique and will “respond” to one of the measures of the Economic Acceleration Package, as well as “adopting measures to prevent and combat” money laundering and terrorist financing in insurance operators and pension fund management entities.
“Contributing to transparency in its management, complying with the 40 recommendations issued by the FATF, with a view to removing the country from the grey list,” the statement from the Council of Ministers also stated.
The decision will also allow “observation of the indicator on the alignment of the regulatory framework in matters of insurance and pension funds” with the “principles” of the International Association of Insurance Supervisors (IAIS) and the International Organization of Pension Supervisors (IOPS), according to the Government.
The Council of Ministers also approved the proposed legislative authorisation act for the government to approve the insurance legal framework, a review that will “introduce legislative reforms in the insurance sector that are appropriate to the current dynamics”, as well as “the principles and good practices of approach, governance and management of insurance issued by international organisations”.
Among other measures, this review includes the “establishment of the role of the customer ombudsman”, to “streamline the resolution of conflicts in insurance contracts”, as well as “redefining rules for risk distribution in reinsurance operations”, expanding the range of offences committed in the exercise of the activity, “including the reinforcement of the respective sanctions”, and defining the general rules of conduct for the market, “introducing the general principles for the liquidation of insurers and reinsurers”.
The Mozambican authorities announced on May 15 that they had already met all the indicators that led to their inclusion on the FATF’s grey list of financial jurisdictions on October 22, 2022, namely for not having eliminated deficiencies in the fight against money laundering and terrorist financing.
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