Comprehensive Guide to Licensing a New Insurance Company

Begin by preparing and submitting a detailed proposal to the regulatory authority. This proposal should include a feasibility study report, a certified copy of the published prospectus (if applicable), and comprehensive details about the promoters. Ensure the proposal aligns with the requirements outlined in Sections 27A, 30, and 31 of the Insurance Act and Regulation 7.

Once the authority reviews and approves your proposal, you will receive an approval in principle. This approval is contingent upon fulfilling additional requirements, such as completing the prescribed application form (Form No. 30-1) and paying the applicable licensing fees.

Submit all necessary documents, including a certified copy of the certificate of incorporation, CR12 form, Articles and Memorandum of Association, and evidence of the minimum paid-up share capital. Additionally, provide details of shareholders, directors, and management staff, along with the proposed classes of business and premium rates.

Ensure compliance with financial requirements, such as depositing the specified amounts with the Central Bank of Kenya and securing reinsurance arrangements. Provide a certificate from an actuary for long-term insurance business and submit specimen proposal and policy forms for all intended classes of business.

Complete the process by submitting a statement of initial administrative cost coverage and ensuring the company name complies with Section 190 of the Insurance Act and Regulation 15 (4) of the Micro-insurance Regulations. Once all requirements are met, the authority will grant the license to operate.