President Dr Mohamed Muizzu has ratified the Insurance Act, a far-reaching legislative measure that introduces a formal regulatory framework for the insurance sector in the Maldives. The bill was approved during the 26th sitting of the second session of the 2025 parliamentary term, held on Monday, 18 August.
Under the new law, insurance companies and intermediaries are subject to defined licensing requirements and regulatory oversight. The legislation sets out the conditions under which insurance services may be offered, alongside detailed procedures for obtaining operational licences.
It also addresses the internal governance of insurance firms, specifying how management should be structured and the principles by which these entities must operate. Trade conditions are clearly outlined, and operational standards for intermediaries are codified to ensure consistency and compliance.
Provisions concerning record-keeping, financial reporting, audits, and inspections form a critical part of the framework. The law introduces supervisory mechanisms designed to uphold transparency and institutional integrity across the sector.
Additional guidelines cover market conduct and dispute resolution, while also detailing the appointment of administrators and the regulatory actions to be taken in defined circumstances.
Following ratification, the Insurance Act was published in the Government Gazette and has now come into force. According to government sources, its implementation is expected to strengthen consumer protections, reinforce financial oversight, and support the long-term development of the country’s insurance industry.