MWB Global Market Update: Kosovo - New Insurance Product Governance & Consumer Protection Standards
Updated: 7 days ago
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KOSOVO: New Insurance Product Governance & Consumer Protection Standards
The Central Bank of the Republic of Kosovo (CBK) has introduced two new regulations strengthening insurance product governance, customer information, transparency, advertising, and consumer protection.
The framework introduces structured product governance requirements, including target-market identification and ongoing product monitoring, as well as a standardized Insurance Product Information Document (IPID) for non-life insurance products.
Insurers and insurance intermediaries, including branches of foreign entities licensed by the CBK, have 12 months from the regulations' entry into force to achieve full compliance.
HISTORICAL CONTEXT
Kosovo's insurance regulatory framework is continuing to develop toward stronger market conduct, transparency, governance, and consumer protection standards.
The latest reforms significantly expand the Central Bank of the Republic of Kosovo's (CBK) approach to insurance supervision. Rather than focusing primarily on formal regulatory compliance, the new framework places greater emphasis on how insurance products are designed, distributed, explained, and monitored throughout their life cycle.
The two regulations establish requirements covering product development and approval, target-market identification, distribution practices, customer information, costs and fees, advertising, conflicts of interest, and ongoing product monitoring.
Importantly, the framework also introduces specific protections for vulnerable consumers and addresses communication through digital channels.
Together, the regulations represent a broader shift toward outcome-focused insurance supervision, with insurers and intermediaries expected to demonstrate that products and distribution practices appropriately reflect customer needs and interests.
These two new regulations include:
1. Regulation on the Development, Distribution and Governance of Insurance Products
2. Regulation on Information, Advertising, Costs and Transparency towards Customers in Insurance
OVERVIEW OF THE REGULATORY UPDATE
The new framework introduces requirements that extend across the entire life cycle of an insurance product, from initial development and approval through distribution, customer communication, monitoring, and corrective action.
Insurance products must be developed with a clearly identified target market and take into account the needs, objectives, characteristics, and risk profiles of the customers for whom they are intended.
Before a product is distributed or sold, customer demands and needs must also be identified. Insurers are then expected to monitor products and customer outcomes throughout the product life cycle.
At the point of sale, customers will receive stronger disclosure of product characteristics, coverage, exclusions, limitations, premiums, fees, rights, and obligations.
For non-life products, this includes the introduction of a standardized Insurance Product Information Document (IPID) designed to provide concise and comparable information before the customer enters into an insurance contract.
What does this mean for multinational insurance? →
THE FIVE KEY ELEMENTS OF THIS NEW REGULATORY REQUIREMENT
IMPLICATIONS FOR MULTINATIONAL ORGANIZATIONS
Kosovo’s new insurance regulations introduce stricter requirements for product governance, customer disclosures, distribution practices, intermediary oversight, and compliance. Multinational insurers and intermediaries operating in Kosovo may need to adapt local distribution arrangements, documentation, and internal controls to meet these requirements, even when products are managed through broader regional or international programs.
Why is this significant? →
GLOBAL MARKET IMPACTS
The Central Bank of the Republic of Kosovo (CBK) has introduced two new regulations strengthening insurance product governance, customer information, transparency, advertising, and consumer protection.
→ Multinational Insurers
Insurers distributing products in Kosovo will need to incorporate the new requirements into local product governance, documentation, sales practices, and monitoring.
Global insurers may need to determine where centralized governance processes remain sufficient and where Kosovo-specific controls or documentation are required.
→ Insurance Intermediaries
The regulations have direct implications for intermediaries, particularly around customer needs, sales practices, conflicts of interest, and customer communications.
This makes local intermediary oversight an important consideration for multinational insurers and organizations using cross-border broker networks.
→ Consumer Protection
The framework strengthens protections throughout the customer relationship, including specific consideration of vulnerable consumers and communication through digital channels.
The change reflects a broader supervisory emphasis on customer outcomes rather than compliance with disclosure requirements alone.
→ Insurance Markets
The immediate effect is primarily local, but the reforms are relevant to multinational insurers operating in Kosovo because they introduce additional governance, disclosure, distribution, and compliance requirements.
For global organizations, the significance lies less in changing international insurance capacity or pricing and more in ensuring that local insurance activity remains aligned with jurisdiction-specific regulatory requirements.
IMPACT ON MULTINATIONAL INSURERS
What should multinational insurers consider moving forward?
THE STRATEGIC TAKEAWAY
Kosovo's new insurance regulations represent a significant strengthening of product governance, market conduct, transparency, and consumer protection requirements within the local insurance sector.
For multinational organizations and insurers with Kosovo exposure, the changes reinforce three considerations:
Local compliance remains essential within global insurance structures. Centralized product governance and distribution frameworks must still account for jurisdiction-specific requirements.
Insurance distribution is receiving greater regulatory scrutiny. Product design, customer needs, intermediary conduct, remuneration, conflicts of interest, and advertising now form part of a more integrated supervisory framework.
Preparation should extend beyond policy wording. Documentation, governance, sales processes, internal controls, compliance oversight, monitoring, and customer communications may all require review.
The 12-month transition period provides an opportunity for insurers and intermediaries to assess existing practices and address potential gaps before full compliance is required.
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FURTHER READING
Central Bank of the Republic of Kosovo (CBK). CBK Sets New Standards for Consumer Protection and Market Conduct in the Insurance Sector. September 3, 2026.
Central Bank of the Republic of Kosovo (CBK). CBK Board Decisions. August 27, 2026.
Central Bank of the Republic of Kosovo (CBK). Regulation on the Development, Distribution and Governance of Insurance Products. August 27, 2026.
Central Bank of the Republic of Kosovo (CBK). Regulation on Information, Advertising, Costs and Transparency towards Clients in Insurance. August 27, 2026.
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