Friday, July 12, 2024

Government revokes license of Austral Seguros due to lack of financial guarantees

The Insurance Supervision Institute of Mozambique (ISSM), in accordance with a ministerial decision of December 13, announced the revocation of the license of Companhia de Seguros da África Austral, due to the lack of essential financial guarantees. The measure, published in a notice quoted by the newspaper Notícias, highlights the absence of the guarantees required by law to operate in the insurance sector, as well as the failure to update the share capital, as stipulated by Decree 39/2028 of July 5.

The ISSM justified the revocation with Austral Seguros’ harmful conduct, stating that it significantly affects the interests of policyholders and injured third parties. The regulator emphasized the importance of protecting consumers and ensuring the stability and credibility of the insurance market in Mozambique. The statement highlights the deficiencies presented by the company, considering them incompatible with the continuity of its operations in the country.

Although the document does not clarify the treatment to be given to Austral Seguros insurance policy holders, it is worth remembering that the company was executed earlier this month, following a court order in Maputo. The execution took place due to non-compliance with obligations to clients.

The revocation of the license highlights significant challenges faced by Austral Seguros, signaling the need for immediate action to protect the interests of policyholders and the stability of the insurance sector in Mozambique.

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