Supervision and Control

Principal Legislation

  • The Insurance Order 2006 and Insurance Regulation 2006
  • The Takaful Order 2008 and Takaful Regulations 2008
  • The Monetary Authority ofBrunei Darussalam Order 2010


The Financial Institutions Division of the Ministry of Finance used to supervise and monitor the activities of all financial institutions, however, a new supervisory organisation, the Monetary Authority of Brunei Darussalam (Autoriti Monetari Brunei Darussalam – AMBD) began operations. The AMBD is now responsible for monetary policy and the monitoring of financial institutions and currency trading.

The AMBD is also responsible for regulating the takaful sector.

Admitted / Non-admitted

Insurance business in Brunei may be carried on only by a registered insurer. There is no legal restriction as to where reinsurance is placed.

Compulsory Classes

  • Motor third party bodily injury.
  • Professional indemnity insurance – insurance brokers, architects and engineers undertaking government contracts.
  • Oil pollution liability.
  • Workers’ compensation.

State Involvement

One insurance company is owned by the Brunei government and plays a unique role in representing the interests of the Brunei Investment Agency (BIA), an arm of the Ministry of Finance under the direct control of the Sultan, which has managed most of the sultanate’s income since the mid 1980s.

The state also effectively owns 100% of one of the takaful insurance companies.

Tariff Classes

Since June 2002 a minimum motor tariff has been used. There are no other tariffs, although life insurance rates must be approved by company actuaries.

Premium Taxes and Charges

Stamp duty of 25 cents is applied to all non-life classes and personal accident and healthcare. Life policies are subject to a stamp duty of BRD 1 of BRD 10,000 per sum assured.

Policy Language


Non-Life (P&C) Insurance Market

Brunei’s insurance market is small both in terms of population and of land area and is more than adequately served by around 250 non-life agents. Insurance Order 2006 and Insurance Regulations 2006 require agents to be registered and transact business only with locally licensed insurers. Brokers are also required to have a minimum capital of BND 200,000 and effect professional indemnity insurance.

Reinsurance Market

The Brunei insurance industry depends heavily on foreign reinsurance support in the non-life sector, reflecting the inherent limitations of a very small market. There is complete freedom for insurance companies to reinsure offshore, and it is said that less than 10% of all non-life business is reinsured within Brunei. Coinsurance is not common.

Distribution Channel

Brunei’s insurance market is small both in terms of population and of land area and is more than adequately served by around 250 non-life agents.

The three conventional life offices in Brunei employ some 350 agents to distribute their products.

Natural Hazards

In spite of being close to Indonesia, parts of which are particularly susceptible to earthquake and tsunami, Brunei has not suffered from these hazards, and the exposure is viewed as insignificant. Flooding is caused by the overflow of rivers running down into Brunei from the interior of the island of Borneo or localised flash flooding following heavy tropical rainstorms