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Mozambique: Institute for Insurance Supervision orders closure of Austral Seguros – AIM
7:38 CAT | 21 Dec 2023
File photo: Notícias
The Mozambican Institute for Insurance Supervision (ISSM) has ordered the closure of Austral Seguros because of “its incapacity to operate in the insurance sector.”
According to a note published by the Maputo daily “Notícias”, the company lacks the financial guarantees required of entities authorized to carry on insurance business.
The note also points to the failure to update the company’s share capital as the main reasons that led the ISSM to revoke Austral Seguros’ licence.
“The conduct demonstrated by the Insurance Company of Southern Africa (Austral) greatly harms the interests of the insured and injured third parties, who must be protected in the first place, as well as disrupting the normal operating conditions of the insurance market, which is intended to be efficient, solid and credible, showing deficiencies for the continued exercise of insurance activity in the Republic of Mozambique”, the ISSM said.
Austral Seguros’ licence is being revoked two weeks after the company was foreclosed on by court order, due to its inability to pay its creditors.
Source: AIM
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