(JUBA) – The Central Bank of South Sudan (BOSS) has issued a new directive that places all insurance companies and related institutions under its sole regulatory authority, with immediate effect from 8 September 2025.
Circular No. 5 sets out the licensing framework for the insurance industry, requiring that no entity may operate, advertise, or underwrite insurance business in South Sudan without a valid licence issued by BOSS. The central bank will now regulate, license and supervise all insurers, brokers, agents and related service providers.
The circular defines key terms to provide clarity for stakeholders. These include definitions of actuaries, insurance agents, brokers, loss adjusters, insured persons, and insurers. It also explains common types of policies, such as life insurance and third party insurance, and introduces provisions covering reinsurance and premium payments.
The scope of the circular applies to a wide range of entities, including insurance and reinsurance companies, brokers, agents, and medical insurance providers. The stated objective is to create a “vibrant and competitive” financial sector by developing a fair, safe, and stable insurance industry.
The Bank says this will help promote insurance as a risk management tool, expand financial inclusion, and mobilise resources for economic growth.
Licensing conditions have been tightened, with both local and foreign companies expected to meet strict financial and governance requirements.
| Licensing Requirement | Amount in USD | Equivalent in SSP |
|---|---|---|
| Application Fee (non refundable) | 10,000 USD | 46,000,000 SSP |
| Minimum Paid up Capital (Local firms) | 2,500,000 USD | 11,500,000,000 SSP |
| Minimum Paid up Capital (Foreign firms) | 5,000,000 USD | 23,000,000,000 SSP |
| Annual Renewal Fee (Insurance companies) | 5,000 USD | 23,000,000 SSP |
| Annual Renewal Fee (Service providers) | 1,000 USD | 4,600,000 SSP |
Applicants must also present a business plan with five year financial projections, audited accounts for at least three years if already operational, and proof of integrity and competence of their directors and senior management. Certificates of Good Conduct from relevant authorities are mandatory for all company leaders.
BOSS has committed to notify applicants within 30 working days whether their submissions are complete. The Bank reserves the right to reject applications that do not meet requirements, with reasons communicated in writing.
Transitional arrangements require all existing insurance companies to apply for licences within one month of the circular’s issue. Failure to do so will lead to loss of the right to operate in South Sudan.
Any changes to an insurer’s head office, branch office, or corporate name must receive prior written approval from BOSS. Non compliance will attract administrative and financial penalties for both firms and senior management.
The circular also prohibits any individual or company from conducting or promoting insurance services in South Sudan without a valid licence.
The move marks one of the most significant steps to date in regulating the country’s insurance industry. With capital requirements set at 2.5 million US dollars (11.5 billion SSP) for local firms and 5 million US dollars (23 billion SSP) for foreign companies, the central bank has signalled its intention to professionalise and stabilise the sector.
Insurance Companies Face Stricter Licensing Rules in Juba
| Term | Definition (as per circular) |
|---|---|
| Actuary | A professional member or fellow of an approved actuarial institute, faculty, society, or association. |
| Insurance Business | Any activity of assuming risks or undertaking liability related to insurance or reinsurance contracts, including intermediary business. |
| Insurer | A licensed legal entity authorised to conduct insurance business. |
| Insured Person | An individual covered by an insurance contract. |
| Insurance Agent | A non-salaried person who, for a commission, solicits or finds insurance business for an insurer or broker. |
| Insurance Broker | An intermediary who places insurance business with insurers or reinsurers and earns a commission or brokerage fee. |
| Life Insurance | A contract in which the insurer pays a beneficiary a sum of money upon the death of the insured person, in return for a premium. |
| Loss Adjuster / Loss Assessor | A professional who investigates, negotiates, and settles losses on behalf of either the insurer or the insured. |
| Premium | The payment made by a policyholder to an insurer under an insurance contract. |
| Reinsurance | The business of accepting liability from insurers or reinsurers for contractual liabilities they have incurred. |
| Third Party Insurance | Insurance purchased for protection against the actions of another party. |
Bank of South Sudan – Circular No. 5: Licensing of Insurance Companies
| Section | Regulation / Provision | Details |
|---|---|---|
| Authority | Sole regulator | Bank of South Sudan (BOSS) is the only authority to regulate, license, and supervise insurance companies and institutions in South Sudan. |
| Prohibition | Licensing requirement | No entity may conduct insurance business without a valid BOSS licence. |
| Scope | Entities covered | Applies to insurance and reinsurance companies, brokers, agents, medical insurance providers, and other related entities. |
| Objectives | Sector goals | Foster a vibrant and competitive financial sector; develop a safe, stable insurance industry; strengthen legal and regulatory framework; promote insurance as a risk management tool; increase access to customer-focused products; mobilise resources for development; expand financial inclusion. |
| Application Fee | Non-refundable | USD 10,000 (SSP 46,000,000). |
| Business Plan | Requirement | Five-year financial projections must be provided. |
| Financial Records | Requirement | Existing companies must provide audited statements for at least three years. |
| Governance | Requirement | Board members, directors, and senior managers must be competent, capable, and free of fraud or dishonesty convictions. |
| Certificates | Good conduct | Certificate of Good Conduct required for all board members, directors, and senior management. |
| Paid-up Capital | Local firms | Minimum USD 2,500,000 (SSP 11,500,000,000). |
| Foreign firms | Minimum USD 5,000,000 (SSP 23,000,000,000). | |
| Application Process | Submission | Written applications with required documents to be submitted to the Governor of BOSS. |
| Processing period | BOSS will confirm if the file is complete or incomplete within 30 working days. | |
| Decision | Applications not meeting requirements may be rejected in writing. | |
| Transitional Arrangements | Existing insurers | Must apply for a licence within one month of the circular date, or lose the right to operate. |
| Annual Renewal Fees | Insurance companies | USD 5,000 (SSP 23,000,000). |
| Other providers | USD 1,000 (SSP 4,600,000). | |
| Changes | Approval requirement | Any change of head office, branch, or company name requires prior written BOSS approval. |
| Penalties | Non-compliance | Administrative and financial penalties will be imposed on insurers, intermediaries, and their senior managers. |
| Advertising & Services | Prohibition | No person or company may advertise, solicit, underwrite, or provide insurance services without a BOSS licence. |
Analysts say the directive could help build public confidence in insurance products, which remain underdeveloped in South Sudan. Increased access to customer focused insurance products, they argue, could provide families and businesses with financial security while also supporting investment and economic resilience.
