Insurance regulation is unpredictable. Rules can shift quickly, impacting underwriting, distribution, and costs, reminding us why staying ahead is critical. Axco tracks global regulatory changes, explains their impact, and delivers timely alerts so you can act with confidence. We’re currently monitoring three key developments shaping the market.
We have been informed by the regulator that a draft law introducing compulsory motor third-party liability (MTPL) insurance is included in the government’s short-term legislative plan for the 2026 spring session of the Parliament of Georgia.
Market sentiment is mixed. Some stakeholders are sceptical, citing previous unsuccessful proposals and political sensitivities, particularly during election cycles. The public often sees compulsory MTPL as an added cost or a form of taxation. Others are more optimistic, noting this draft has advanced further than prior attempts. Several industry participants are cautiously preparing for possible implementation in 2027.
Recent changes in Kenya show how quickly compliance can shift from a common practice to a strict requirement, especially as regulators focus on keeping premiums local and on using digital tools to enforce rules.
In late 2025, the Insurance Regulatory Authority (IRA) released several instruments for public consultation. The Insurance (Amendment) Regulations, 2025, proposed raising the mandatory cession rate for business insurers to Kenya Re from 20% to 25%. The proposal also suggests maintaining these rates until Kenya Re is privatised or further regulatory changes occur, rather than setting them annually. Although the change was intended for 1 January 2026, no official update had been issued as of April 2026.
Digital purchase of marine cargo insurance is now required
As of 1 July 2025, importers must purchase marine cargo insurance online from a licensed insurer in Kenya before clearing goods through customs. This rule helps meet the requirements of the Marine Insurance Act (Chapter 390, as amended) and the Insurance Act (Chapter 487). Importers must get a local “Digital Marine Cargo Insurance Certificate.” The start date was moved from 14 February 2025 to 1 July 2025 due to technical issues.
The local-insurer requirement does not apply to marine cargo policies for personal effects, goods, or items imported by returning residents, or by passengers entering Kenya for permanent or temporary residence, in line with Section 20(1) of the Insurance Act. Proof of insurance is still needed to clear customs. Where cover is arranged with an unlicensed insurer, the client must provide a schedule of the insured items to show the nature of the goods and confirm that they fall within the exclusion.
With the new requirement in effect and more business retained in the local market, growth in the marine cargo segment is expected, with our estimates of an additional KES 209mn (USD 1.59mn). Some resistance is anticipated, especially for imports under established Incoterms such as CIF and FOB, as the new rules may override existing contracts.
Increased FGTI Contribution and Expanded Scope
France’s 2026 Finance Law, published in the official gazette on 20 February 2026, increases the contribution to the Guarantee Fund for victims of acts of terrorism and other offences (FGTI) from EUR 6.5 (USD 7.61) to EUR 15 (USD 17.55) per policy, effective from 1 January 2027. The levy is also expanded to apply to all general liability insurance contracts
Riot risk: the state-backed plan is dropped in favour of an insurer-funded pool
The 2026 Finance Law (official gazette, 20 February 2026) replaced the planned state-backed guarantee for riot losses with a pool funded by insurers. This pool will be paid for by a levy on motor, property damage, and business interruption premiums.
Axco keeps you up to date on global insurance regulation with practical updates and Regulatory Alerts, so you can respond quickly.
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