The Bank of South Sudan (BoSS) has tightened rules for existing and new insurance companies seeking to operate in the country in a move it says is aimed at ensuring a safe and stable sector.

The banking regulator says in a circular dated September 8 that foreign companies seeking to set up insurance business in the country will be required to have a minimum paid up capital of $5 million or equivalent in South Sudan pounds at the prevailing exchange rate, in addition to a non-refundable application fee of $10,000 and annual license renewal fees of $5,000.

Local insurance companies will, however, be required to have only half of the amount ($2.5 million) in paid up capital, with the regulator standing ready to revise the capital requirements from time to time.

Previously, the South Sudan Insurance Bill (2010) required non-national companies seeking insurance licences to have a paid-up capital of not less than 100,000 Sudanese Pounds ($767.79) for life or non-life insurance business, and 250,000 Sudanese Pounds ($1,919.23) for reinsurance business.“The objective of this circular is to promote a vibrant and competitive financial sector through the development of a fair, safe, competitive and stable insurance sector,” says BoSS. “This will be achieved by strengthening the legal and regulatory environment, promotion of insurance as a risk management tool, enhancing access of customer-centric insurance products, mobilising financial resources for development, increasing insurance penetration and ensuring broader financial inclusion and access.”According to the circular, any entity seeking to operate an insurance business in Juba must present, in addition to the capital requirements, a business plan and financials for the first five years of operation, and tax clearance certificate for existing and proposed shareholders, directors and key management personnel.

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