New Insurance Regulations Enforced to Protect Policyholders and Strengthen Financial Sector

The Maldives has officially published two pivotal regulations in the Government Gazette to implement the Insurance Act, marking a significant shift in the nation's financial oversight. The new frameworks, titled the Regulation on Insurance (Domestic Risks) and the Regulation on Insurance (General Provisions), are designed to establish robust industry standards and foster a more competitive market. The Regulation on Insurance (Domestic Risks) provides a formal definition of domestic risks and sets clear guidelines for exemptions. It specifically outlines the criteria under which individuals or entities can apply to the regulatory authority for permission to secure insurance coverage from providers other than licensed companies operating within the Maldives. Complementing this, the Regulation on Insurance (General Provisions) focuses on the operational mechanics of the sector. This framework defines the legal scope for entities permitted to solicit insurance business, establishes rigorous application procedures for insurance broker licenses, and details the protocols for administrative actions. These regulations are administered and enforced by the Maldives Monetary Authority (MMA). The legislative foundation was established when President Dr Mohamed Muizzu ratified the Insurance Bill in August 2025. Under this Act, the MMA is empowered to regulate and supervise all insurance businesses and intermediaries, making it mandatory for all industry participants to hold a valid MMA-issued license. By aligning industry operations with safe, high-quality international standards, the government aims to ensure insurance services are better tailored to public needs. These measures are expected to increase consumer protection for policyholders while contributing to the broader economic stability and growth of the Maldives.