Libya's Ministry of Economy and Trade has issued Decision No. 374 of 2026, the country's first binding regulatory framework for reinsurance companies operating in or seeking access to the Libyan market, the Libya Herald reported.
The decision, signed by Minister of Economy and Trade Suhail Abu Shiha, requires reinsurance companies, their branches, and representative offices to register with the Insurance Supervisory Authority. It also establishes guidelines governing how insurance companies operating in Libya interact with one another.
The Libya Herald reported the ministry as saying the regulation addresses a legislative gap of more than 20 years since the issuance of the last insurance law. For the first time, the decision sets clear and binding rules for the registration of reinsurance companies qualified to operate in the Libyan market, and links their access to solvency standards, international credit ratings and internationally approved institutional oversight.
The ministry said the decision sets controls to distribute risks and reduce their concentration. It also strengthens the capacity of national insurance companies to manage insurance portfolios on more technical and professional foundations, describing the measure as opening a new phase in the management of insurance risks within the country.
The Libya Herald reported the ministry as stating that the decision sits within an institutional reforms programme aimed at updating Libya's economic and financial legislation. The stated objective is to bring the Libyan regulatory environment into line with international standards and strengthen the confidence of investors, financial institutions, and international insurance companies in the market.
The decision is expected to raise governance and transparency standards in the insurance sector, protect policyholders' rights, and reinforce the financial positions of national insurers, according to the Libya Herald. The ministry also cited the need to support the national economy's capacity to manage risks linked to investment projects, infrastructure, and strategic sectors.
The reform comes as the broader African reinsurance market draws growing international attention. Africa's reinsurance market generated US$6.269 billion in premiums in 2024, representing just 1.6% of global reinsurance underwriting, according to data cited by the African Insurance Organisation (AIO).
Libya has historically operated one of the region's less developed insurance markets. The new framework marks the first structured attempt to bring its reinsurance sector within a formal supervisory and solvency-based regime.
