The Maldives Monetary Authority (MMA) has brought two new regulations into effect under the Insurance Act, setting out rules covering the insurance of risks located in the Maldives and several broader requirements governing the insurance industry.
The regulations were published in the Government Gazette on August 27 and form part of the regulatory framework required to implement and enforce the Insurance Act, which was enacted as Act No. 13/2025.
One of the newly introduced regulations, the Insurance (Maldivian Risks) Regulation, establishes the criteria for determining whether an insurance risk is considered to be located in the Maldives.
Under the Insurance Act framework, risks located in the country are generally required to be covered through insurance policies obtained from licensed insurers operating in the Maldives.
The regulation also establishes circumstances in which exemptions from this requirement may be granted. It sets out the situations in which parties can apply to the MMA for permission to obtain alternative insurance arrangements, alongside additional conditions published by the Authority.
The second regulation, the Insurance (General Provisions) Regulation, addresses several areas where the Insurance Act requires specific procedures, criteria or decisions to be established through subsidiary regulations.
Among its provisions are rules defining the permitted scope of activities for entities authorised to solicit insurance business in the Maldives.
The regulation also establishes the criteria the MMA will consider when deciding whether to issue an insurance broker licence and specifies the information applicants must submit when seeking such a licence.
In addition, it lays down procedures for administrative actions taken by the Authority under powers granted through the Insurance Act.
The regulations are part of efforts to establish a clearer statutory framework for the Maldivian insurance sector following the introduction of the Insurance Act in 2025.
As the country’s central bank and financial sector regulator, the MMA is responsible for supervising insurance companies and other regulated financial institutions operating in the Maldives.
The new rules provide further detail on how several provisions of the Insurance Act will operate in practice, including the treatment of locally based risks, insurance intermediaries and the regulatory procedures available to the Authority.
