The Reserve Bank of Malawi, through the Registrar of Financial Institutions, has highlighted key requirements under the Insurance Act 2024 following the expiry of the 12 month transitional period on 1 May 2026. The Act, which took effect on 1 May 2025 and replaced the Insurance Act 2010, requires premiums to be paid before an insurance policy starts, except for life insurance other than group life insurance, and introduces mandatory cover for construction projects and public buildings. Registered contractors must obtain insurance before works begin for third party bodily injury, loss of life, and property damage arising from the works, and keep that cover in force until the end of the project defects liability period. Owners of public buildings, including tenement houses, lodges, and hostels, must insure against risks such as collapse, fire, and natural disasters, along with liability for death, bodily injury, and property loss or damage. The Act also requires insurance on imported goods, where such insurance is taken out, to be placed with a licensed insurer in Malawi, with banks and financial institutions issuing letters of credit or similar instruments on a cost and freight basis. Insurance fraud is subject to a fine of MWK 100,000,000 or three times the amount defrauded or intended to be defrauded, whichever is greater, and imprisonment for ten years.
Reserve Bank of Malawi2026-05-29
Reserve Bank of Malawi highlights advance premium and mandatory insurance requirements under the new Insurance Act
The Reserve Bank of Malawi, through the Registrar of Financial Institutions, has outlined key requirements now in force under the Insurance Act 2024, including a general requirement for premiums to be paid before cover incepts and mandatory insurance for construction projects and public buildings. The Act also requires insurance on imported goods to be placed with a licensed Malawian insurer and backed by bank letters of credit on a cost and freight basis. Insurance fraud attracts a fine of MWK 100,000,000 or three times the amount defrauded, whichever is higher, and imprisonment for ten years.