Apply for an Insurance Licence

Licensing Requirements of Reinsurers

• For the purpose of these registration requirements, reinsurance companies shall refer to the companies that have been approved by the Financial Services Regulatory Authority and registered in accordance with the Reinsurance Act,2023 to operate reinsurance business.
• Based on the scope of business, reinsurance companies can be divided into life reinsurance companies, non-life reinsurance companies, and composite reinsurance companies.

Application and Licensing of Reinsurers

• In order to qualify for a license as a reinsurer a person shall meet the following requirements:
  • the applicant shall be a public company registered in terms of the Companies Act, 2009;
  • the primary business activity of the applicant shall be the conducting of reinsurance business and operations arising directly from the reinsurance business;
  • at least 25% of the issued shares of the applicant shall held by a person who—
    • if he is a natural person, is a citizen of Eswatini,
    • if he is a juristic person, then—
      • at least 51% of the issued voting share of that person is owned by a person who is a citizen of Eswatini;
      • at least 51% of the interest in that person is owned by a person who is a citizen of Eswatini;
      • Where the person is a retirement fund, at least 51% of its members must be citizens of Eswatini.
    • if an association of person established for the mutual benefit of its members only, at least 80% of its members must citizens of Eswatini and the aforementioned members must have a claim to at least 51% of the association assets.
    • at least 25% of the directors of the applicant shall be citizens of Eswatini.
  • An application for licensing as reinsurer under this Act shall be accompanied by—
    • the Memorandum and Articles of Association endorsed by the Registrar of Companies under the Companies Act, 2009;
    • a certificate of incorporation issued by the Registrar of Companies under the Companies Act, 2009; and
    • a certificate of an actuary certifying that the intended business plan of the company covering a period of five (5) years is reasonable and would result in the company maintaining a sound financial position.
  • The Authority may request an applicant to submit additional information as the Authority may require to make a decision.
  • Where the Authority is satisfied that the person referred to in subsection (1) has complied with all the requirements under this section 16, the Authority may license that person and issue that person with a license.
  • The Authority may refuse to license a company as a reinsurer where—
  • the requirements under this section and sections 16 or any request that the Authority may have made in terms of subsection (3) have not been fulfilled;
  • the Authority considers it to be in the public interest; or
  • the Authority may attach any conditions to the licensing of a reinsurer that the Authority considers to be in the public interest.
  • A reinsurer who intends to carry on an additional class of business shall apply for approval to the Authority.

Licensing Requirements of Insurance Brokers

• Pursuant to Insurance Act of 2005, in order to apply for a license to operate as an insurance broker and agent in the Kingdom of Eswatini, the following requirements are applicable.
• An application letter requesting approval for a license in terms of section 15 of the Insurance Act must be addressed to the Registrar of Insurance and Retirement Funds.  The letter should state;
  • Reasons for applying.
  • Indicate the type of insurance business you seek to market (short-term insurance and/or long-term insurance).
  • Types of classes of insurance business that will be marketed.
• The application should be accompanied by the following documents:
  • Authenticated proof that the business is registered in Eswatini (certificate of incorporation and memorandum and articles of association) A statement of the address of the company's physical office in Eswatini.
  • A statement of the name, address, nationality, qualifications, work experience and other professional and/or business interest (setting out his educational qualification and his experience in the insurance industry) and country of residence of the company's chairman, other directors, and the principal representative.
  • A statement with full details of the applicant’s reputation and character (creditworthiness, bankruptcy, fraud, dishonesty, disqualification as a director, insolvency, etc.)
  • A statement of professional and work conduct (dismissals, disciplinary actions, litigation, etc.
  • In the case of shareholders, a statement that includes but is not limited to difficult economic situations, involvement in illegal transactions such as money laundering,
  • Police clearance certificate of all directors and principal representatives.
  • Details of Trust Account
  • Risk management strategy.
  • Corporate Governance strategy.
  • List of countries in which the applicant carries on business as a broker and a certificate by the regulatory authority of such country indicating whether the applicant has consistently complied and is complying with the law in each country.
  • Proof of guarantee ceded to the registrar in the form of:
    • Fidelity insurance cover
    • Securities issued by the Government of Eswatini
    • Guarantee issued by a licensed bank or financial institution in terms of the Financial Institutions Act of 2005 or
    • Deposit with the Registrar an amount to be deposited into the Benefit Trust Fund in terms of section 43 of the Insurance Act, 2005
    • The guaranteed amount should be equal to at least 20% of the expected premium that the broker expects to collect on behalf of the insurers in his next financial year and shall not be less than E50,000.00.
  • Proof of professional indemnity insurance of E2, 000,000.00.
  • Application fee of E 1000.00 and registration fee of E2, 000.00.
  • Enclose a list of the persons who have an interest in the company and also their percentage interest (share certificates).
  • Enclose a declaration from each member of the board stating that they are unaware of any reason that might lead to the registrar refusing to approve registration in terms of section 16 of the Insurance Act.
  • Audited financial statements in respect of the applicant’s last preceding financial year if the applicant is already conducting insurance business.
  • Financial projections for three years (indicating total expected premiums to be collected) of the business.
  • Application for approval of the use of the abbreviated name which should be accompanied by a statement from the Registrar General’s Office confirming the exclusivity of the proposed name.
  • A declaration that the company has not entered into any agreement with an insurer giving the insurer preference in the placing of insurance business and shall not in future enter into such an agreement.
  • The central administration of policies should be situated in Eswatini and not be outsourced to any institution outside Eswatini.

Licensing Requirements of Individual Agents

• A person wishing to carry on business as an insurance agent shall have suitable qualifications and experience in the insurance business of the class or classes of business which that person wishes to transact on behalf of an insurer or broker.
• An insurer or broker wishing to grant a person an agency shall apply to the registrar in terms of section 19 of the Act of his intention in writing.
• The application must be accompanied by:
  • The curriculum vitae of the applicant;
  • The educational qualification and work experience of that person;
  • The identity number of that person;
  • The name address and telephone number of the previous two employers of that person and
  • A copy of the agreement between the insurer or broker and that person.
  • Statement of character of the principal (creditability and police clearance).
  • E500 for the registration fee.
  • ITC credit clearance certificate.
  • Tax clearance certificate.

Licensing Requirements for Corporate Agents

• In order to apply for a license as a corporate insurance agent in Eswatini, the following requirements are applicable:
• An insurer or broker wishing to grant a corporate entity an agency shall apply in writing, to the Authority in terms of Section 19 of the Insurance Act for registration of that entity as their agent.
• An agent shall act only as an Insurance agent for an insurer or broker mentioned in their certificate of registration and shall operate under the terms and conditions of that insurer or broker as approved by the Registrar of Insurance and Retirement Funds.
• Apply for the approval of the agency agreement in terms of section 19 (3) of the Insurance Act, 2005.
• Indicate the categories of insurance the agent is to sell on behalf of the insurer or broker.
• The application must be accompanied by:
  • The memorandum and articles of association of the corporate agent.
  • The company’s certificate of incorporation.
  • Indicate persons who have a shareholding in the company and the number of shares held.
  • Name and addresses of significant shareholders.
  • C.V. of the main representative/ CEO including educational qualifications and work experience of that person.
  • Police clearances of directors and principal representatives.
  • A sworn statement of the character of the Principal Representative.
  • Statement of the physical and contact details of the corporate agent.
  • An agency agreement between the principal and the corporate agent.
  • Fidelity guarantee covers equal to 20% of the expected premium to be collected in any financial year and shall not be less than E 50,000.
  • Payment of non-refundable application fee of E 1000.00 and E 500.00 registration fee.
  • Application for the approval of an auditor.
  • Recent audited financial statements of the corporate agent.
  • State any other businesses in which the agent has an interest.
  • Submit policies and procedures to be instituted that will ensure the separation of collected premiums from other corporate funds.
  • Indicate agreed period in which premiums are to be transferred to principal.
  • In the event, the corporate agent has agency agreements with more than one insurer or broker, the agreement must be for different types of products and application for registration must be submitted individually by each insurer or broker seeking to secure the services of the corporate agent.
     

Licensing Requirements of a Medical Scheme

• Pursuant to Section 37 of the FSRA Act, 2010, in order to apply for registration as a medical scheme in Eswatini, the following requirements are applicable:
• Every application for registration of a medical scheme must be submitted to the Financial Services Regulatory Authority (the Authority) in writing and must be accompanied by the following:
  • The full name under which the medical scheme is to be registered;
  • Certificate of incorporation and memorandum and articles of association of the company under which the service will be provided, registered in terms of the Company’s Act, 2009. Where the Medical Scheme is incorporated in any other form as stated in Section 37 of the FSRA Act, whether:
    • Individual;
    • Partnership;
    • Cooperative or;
    • A statutory body.
  • The entity must submit proof that the business is registered in Eswatini.
  • The date on which the medical scheme came/ is to come into operation.
  • The physical, postal, and e-mail address of the business.
  • Two certified copies of the rules of the medical scheme which will come into operation on the date of registration of the business or date of registration of the proposed service; whichever date is applicable.
  • The full names, physical and postal addresses, and curriculum vitae of the principal officer/representative (must be resident in Eswatini) and the trustees/directors of the proposed business.
  • In the case of a restricted scheme, the names of all participating employers must be submitted.
  • The name and address of the administrator of the medical scheme;
  • A copy of the administration agreement, in the case where the medical scheme is administered by an administrator.
  • A certified copy of any other administration arrangement that may exist between the medical scheme and any other party;
  • The guarantees and guarantee deposit vouchers as the Registrar may require;
  • If already in existence, the latest audited financial statements and valuation report;
  • A detailed business plan with a three-year financial projection which should include information pertaining to:
    • Membership profile
    • Minimum membership
    • Benefits structure with confirmation by a qualified valuator that the contributions are appropriate in relation to the benefits being offered.
  • Name and details of auditors and valuator of the medical scheme.
  • Copy of reinsurance agreements relating to the medical scheme
  • Affidavit on the fitness and propriety of the principal officer/representative and trustees where applicable.
  • A statement of professional and work conduct (dismissals, disciplinary actions, litigation, etc.)
  • Proof of professional indemnity insurance of E6,000,000.00 minimum, plus 7.5% of the excess assets under management in respect of the scheme;
  • Fidelity guarantees cover equal to 20% of expected contributions to be collected in any financial year and shall not be less than E200,000.00;
  • Payment of non-refundable application fee of E2000.00 and registration fee of E10,000.
  • Risk Management Strategy
  • Corporate Governance Strategy
  • Investment Strategy
  • Proof that the abbreviated name of the company, where applicable, has been reserved by the Registrar of Companies in Eswatini
• Submit other information that the Registrar may require.