ARSEG — Insurance Regulation in Angola
The Agencia de Regulacao e Supervisao de Seguros (ARSEG) is Angola’s dedicated insurance regulator, overseeing the insurance, reinsurance, and pension fund sectors. ARSEG’s mandate ensures the solvency of insurers, protects policyholders, and promotes the development of the insurance market.
Regulatory Mandate
ARSEG’s responsibilities include:
- Licensing: Granting and revoking licenses for insurance companies, reinsurers, brokers, and agents
- Prudential Supervision: Monitoring solvency, capital adequacy, and technical provisions
- Market Conduct: Ensuring fair treatment of policyholders and transparent product disclosure
- Pension Fund Oversight: Supervising occupational and voluntary pension funds
Market Overview
Angola’s insurance market is small relative to the economy, with low insurance penetration. ENSA (Empresa Nacional de Seguros de Angola), the state-owned insurer listed on BODIVA at Kz 18,000, is the largest market participant. The sector includes both life and non-life insurers, with motor and property insurance dominating the non-life segment.
Solvency Requirements
ARSEG imposes capital and solvency requirements on licensed insurers:
| Requirement | Description |
|---|---|
| Minimum Capital | Defined by insurer type (life, non-life, composite) |
| Solvency Margin | Technical provisions must exceed policy liabilities by a prescribed margin |
| Technical Reserves | Insurers must maintain reserves calculated using actuarial methods |
| Investment Rules | Limits on asset classes eligible for backing technical reserves |
| Reinsurance | Mandatory reinsurance arrangements for catastrophic and large risk exposures |
Licensing Requirements
To obtain an insurance license from ARSEG, applicants must demonstrate:
- Adequate share capital meeting minimum thresholds
- Fit and proper management and board members
- Sound business plans with actuarial projections
- Adequate IT systems and internal controls
- Compliance with AML/CFT requirements
Market Access for Foreign Insurers
Foreign insurance companies may operate in Angola through locally incorporated subsidiaries or branch offices, subject to ARSEG licensing. Cross-border insurance provision without a local presence is generally not permitted.
Coordination with Other Regulators
ARSEG coordinates with the BNA on bancassurance products, with the CMC on insurance-linked securities and pension fund investments in capital markets, and with the UIF on AML/CFT compliance within the insurance sector.
Investor Relevance
For investors analyzing ENSA and the broader insurance sector, ARSEG’s solvency requirements, investment restrictions, and licensing decisions are key drivers of profitability and growth potential. The regulatory framework also influences the pricing and availability of insurance products that support commercial and infrastructure investment in Angola.