Pursuant to Law n°2020-005 of 2 June 20202 on Insurance, local incorporation incorporation is required for insurance companies and intermediaries. Only branches of reinsurance companies are authorised.
Prior to that, local incorporation was required for companies undertaking insurance and reinsurance activities in Madagascar.
"Section 2. Subject entities
Article 2. This law is applicable to insurance or reinsurance service providers provided for in Title VII of this law, which are classified as:
- insurance or reinsurance companies, abbreviated as "EA";
- branches of foreign reinsurance companies;
- insurance or reinsurance intermediaries, abbreviated as "IAR";
- distribution channels.
The terms "insurance service providers" designate in this law "insurance or reinsurance service providers", except for specific provisions concerning the insurance or reinsurance providers themselves.
EAs designate all legal persons which carry out, as their usual profession, one or more insurance or reinsurance operations provided for in Articles 5 and 8 to 12 of this law.
IARs designate all natural or legal persons who carry out, as a usual profession, the presentation of insurance or reinsurance transactions provided for in Articles 5 and 8 to 12 of this law on behalf of EAs and customers.
[...]
CHAPTER 3. BRANCH OF A FOREIGN RESINSURANCE COMPANY
Article 211. The CSBF may authorize the opening of a branch of a foreign reinsurance company to carry out the reinsurance operations provided for in Article 8 of this law on the territory of the Republic of Madagascar subject to obtaining an authorization provided for in article 229 of this law.
The provisions of this law concerning EAs apply to branches of foreign reinsurance companies, except for those relating to legal form and registered office.
Branches of foreign reinsurance companies are governed by the provisions of the law on commercial companies.
All the provisions of this law concerning the corporate officers provided for in article 291 of this law are applicable to the general agents of the branches.
[...]
Sub-section 3. IAR capacity requirements
Article 216. Any natural person authorized to present insurance or reinsurance transactions must:
1. have reached the age of legal majority;
2. be of Malagasy nationality or otherwise be a resident in good standing with the regulations concerning the situation and the police of foreigners;
3. meet the conditions of professional capacity set by CSBF instruction;
4. not be subject to one of the prohibitions provided for in article 415 of this law.
[...]
CHAPTER 2. APPLICABLE RULES AND STANDARDS
Section 1. Legal form - minimum capital
Subsection 1. Legal form
Article 279. EAs approved as insurance and reinsurance companies are constituted in the form of a multi-personal public limited company governed by the law on commercial companies.
EAs approved as mutual insurance companies are incorporated in the form of a mutual insurance company governed by this law and its articles of association.[...]" (Law n°2020-005 of June 2, 2020 ON INSURANCE [google translation])
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Previously
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"CHAPTER ONE - General provisions
Art. 191: Legal form of insurance companies
Companies likely to be approved in Madagascar to carry out insurance, capitalization or assistance operations must be constituted in the form of a limited company or mutual insurance company.
Art. 192: Direct insurance abroad
No one may take out direct insurance for a risk concerning a person having the status of resident, property or liability located in the territory of the Republic of Madagascar abroad.[...]" (Law No. 99-013, Insurance Code [google translation])
Law n°2020-005 of June 2, 2020 ON INSURANCE [google translation]
Law No. 99-013, Insurance Code [google translation]
[<a href="https://www.assemblee-nationale.mg/wp-content/uploads/2020/09/Loi-n%C2%B02020-005_assurances.pdf">Law</a>],[<a href="http://www.tresorpublic.mg/tresorpublic/download.php?path=wp-content/themes/tresor-public/statik-content/tresor-public/temp/lois/dof/lois/&file=99_013.pdf">Law</a>]