Background

The supervision and regulation of insurance activities in the Maldives have been mandated to the Maldives Monetary Authority (MMA) by the government of the Maldives since 2001. The "Insurance Industry Regulations", which came into effect in late 2004, mainly focuses on the general insurance sector. As the industry has grown, along with the national economy, the MMA has identified the need to review the regulations with the aim of providing for the formal regulation of life insurance, ensuring observance of international standards as appropriate to the sector development in the country, and to facilitate enhanced supervision through the introduction of appropriate supervisory processes and financial reporting mechanisms.

In response to a request from the Governor of the Maldives Monetary Authority (MMA), this project has been developed in consultation with the World Bank.

Project

The GOAL of this project is to bring international expertise to support the development of regulation and supervision of the insurance sector in the Maldives.

The PURPOSE is to support the MMA efforts to advance insurance regulation and supervision on four fronts which are to (i) develop, based on a review of the current regulation and the operations of companies in the market, a report on insurance regulation and assist the MMA in a transparent consultation with relevant authorities and stakeholders to adopt and advance the recommendations; (ii) support the development of relevant subsidiary rules and assist in the consultation with the industry on the proposals; (iii) recommend a supervisory methodology to support the oversight of the sector and train staff in the operation of the methodology; and (iv) support the development of standard templates and procedure for collecting reporting returns so that supervised entities provide the necessary data to the MMA.

OUTPUTS:  The key outputs of the project are: (i) enhanced insurance regulation; (ii) secondary level rules; (iii) supervisory methodology for application within the MMA; and (iv) Final report that reflects the results of the consultation.

Project LIFE TIME is 15 months from June 2008 till September 2009.

Project BUDGET is $230,000.

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