The Tripoli based Libyan Minister of Economy and Trade, Suhail Abu Shiha, issued a decision (No. (374) of 2026) yesterday regulating the registration of reinsurance companies, their branches, and representative offices with the Insurance Supervisory Authority.
The decision also establishes guidelines governing how insurance companies operating in Libya interact.
The Ministry of Economy says this comprehensive reform regulation of reinsurance and risk management in the Libyan market comes more than 20 years after the issuance of the insurance law.
Establishing for the first time sector clear and binding rules
The Ministry said the decision represents a regulatory address to a legislative vacuum that has lasted for more than two decades, as it establishes for the first time clear and binding rules for the registration of reinsurance companies qualified to deal with the Libyan market, and links their dealings with solvency standards, international credit ratings, and internationally approved institutional control.
Raising efficiency of sector and enhances its financial stability
It added that the decision establishes a new phase in the management of insurance risks within the country, by setting controls to distribute risks and reduce their concentration, and enhancing the ability of national insurance companies to manage insurance portfolios according to modern technical and professional foundations, in a way that raises the efficiency of the sector and enhances its financial stability.
Aligning with international standards
The Ministry of Economy and Trade confirms that the decision comes within the institutional reforms programme implemented by the Ministry to update economic and financial legislation, and align the Libyan regulatory environment with international standards, in a way that enhances the confidence of investors, financial institutions and international insurance companies in the Libyan market.
Enabling national economy to face major investment risks
The decision is expected to contribute to raising the levels of governance and transparency within the insurance sector, enhancing the protection of the rights of the insured, strengthening the financial positions of national insurance companies, in addition to supporting the ability of the national economy to face major risks related to investment projects, infrastructure and strategic sectors.