KOSOVO: CBK revokes the licence of INSIG
"Based on the competences and responsibilities of the Central Bank of the Republic of Kosovo (...) in the meeting held on 26 April 2019, the CBK Executive Board decided to revoke the Licence (...) of the Insurance Company INSIG J.S.C., Kosovo Branch, issued by the Banking and Payment Authority of Kosovo (BPK), legal predecessor of the CBK".
According to the market regulator, the Kosovo Branch of Albanian insurer INSIG faced financial difficulties in fulfilling the legal requirements of the CBK with regards to the capital adequacy and solvency.
"In view of improving the financial situation and fulfilling the legal and regulatory requirements, the Central Bank of the Republic of Kosovo, namely the CBK Executive Board, in compliance with the applicable legislation, has continuously made efforts to solve financial problems of the Insurance Company INSIG J.S.C., Kosovo Branch".
CBK mentioned that despite the readiness and efforts of the CBK, the Board and Management of the insurer did not manage to fulfil the legal requirements and improve the financial situation of the company.
At the same time, "the shareholder of the Insurance Company INSIG, Kosovo Branch, did not respond to the requests of the CBK for capital increase and complying with the applicable legal requirements. Lack of readiness of the shareholder to fulfil the capital requirements has posed a serious risk to the company's capacities to fulfil the obligations to the insured and other creditors".
Therefore, in order to protect the policyholders and to prevent the increase of adverse impact on the insurance market and financial system in general, the CBK, based on the duties and responsibilities deriving from the Law on the CBK and Law on Insurances, decided to revoke the license of the company.
"The CBK initiated the forced liquidation procedures, (...), by appointing the liquidator, which will lead the Insurance Company INSIG under liquidation and will provide fair and equal treatment, always in compliance with the legal requirements in force, for all creditors. Upon the appointment of the liquidator, all responsibilities of the Administrator, Steering Board and Management of the Company in relation to the company management shall cease".
INSIG J.S.C., Kosovo Branch - is the local Branch of Albanian insurer INSIG SH. A ("Insurance Institute"). Established in 1991 as a government-owned monopoly, INSIG was the first insurance company to operate in Albania. The company has expanded its operations outside the country by opening new subsidiaries in Kosovo and Macedonia. EUROSIG bought both the life and non-life insurance businesses of INSIG from Albania's Government for ALL 2.2 billion (~EUR 16.5 million) in May 2016.