- The MMA issued two new regulations under the Insurance Act (Act No. 13/2025) to strengthen domestic market stability and policyholder protection.
- Regulation 2026/R-70 mandates that Maldives-located risks be insured by MMA-licensed companies unless specific exemptions apply.
- Regulation 2026/R-71 sets licensing, broker, and enforcement procedures, requiring insurers to hold a MVR 2 million security deposit per class.
The Maldives Monetary Authority (MMA) has officially issued two comprehensive regulations under the Insurance Act (Act No. 13/2025), introducing tightened regulatory standards for local coverage mandates, insurance brokerage licensing, and foreign market expansion within the country’s financial sector.
The central bank published the Regulation on Insurance Regarding Risks Located in the Maldives and the Regulation on Insurance General Provisions in the Government Gazette, codifying rules to reinforce domestic market stability and protect policyholder interests.
Under Regulation 2026/R-70, insurance covering risks located in the Maldives must be obtained from an MMA-licensed insurance company unless an exemption applies. The regulation defines these risks to include property, locally registered vessels, risks connected to residents and registered businesses, and liabilities arising from activities conducted in the country. Exemptions may be granted where suitable local coverage is unavailable, specialist international coverage is required, local insurers lack the necessary technical capacity, or foreign law requires coverage from an overseas provider. Applications must be submitted to the MMA unless the circumstances fall within exemptions published on its website.
Regulation 2026/R-71 establishes general procedures governing solicitation, insurance licensing, insurance funds, broker licensing, onsite inspections and administrative enforcement. It also requires every insurance company to maintain a security deposit of MVR 2 million for each class of insurance business it conducts. The deposit must be held with the MMA or a financial institution designated by the authority.
The MMA may conduct onsite inspections of insurance companies and intermediaries and examine their operations, governance and internal controls. Where there are reasonable grounds to suspect a breach, the authority may require information and records and inspect business premises, books, financial accounts and other records. Measures available under the Insurance Act include restricting business activities, imposing fines and cancelling licences.
