EA develop insurance firms cross border guidelines

The East African Insurance Supervisors Association (EAISA) has developed a practical guide to oversee activities of insurance firms operating in more than once one country.

The EAISA Chairman and Uganda Insurance Regulatory Authority, Chief Executive Officer Mr Ibrahim Kaddunabbi Lubega said during the 14th insurance supervisors meeting in Dar es Salaam at the weekend that the guidelines will contribute immensely towards stable insurance industry in the region.

He said the supervisors have developed the guidelines on implementation of insurance supervisors for identified insurance groups within the region and a supervisory standard on corporate governance.

“With the cross-border supervision guidelines for insurance companies that have stretched their wings in more than one country, the insurance industry will be able to register significant growth and penetration to benefit the underserved population,” he said.

He said the guidelines will help in setting standards in insurance service delivery as well as increasing efficiency in the market. Kenya insurance sector is robust than the rest in the region with the insurance firms having extended their wings in East African member states.

Similarly, he noted that the guidelines will make it possible for a regulator in one country to acquire necessary information from sister regulatory organisations concerning crossborder insurance companies.

On his part, Tanzania Insurance Regulatory Authority (TIRA) Commissioner General and Chief Executive Officer, Mr Israel Kamuzora said that the development of the guidelines is an alert against the possible repeat of the global financial crisis for which big companies were mostly affected.

“We need the right structures to ensure that members of the East African region are safe to carry out business in a stable environment,” he added.

Mr Kamuzora said insurance penetration in the region is still very low save for Kenya that has a more robust industry, thus denying citizens the immense benefits from insurance services.

He underscored the need to change the culture that doesn’t support insurance. “Many people lack knowledge about insurance but as insurance regional insurance supervisors through the EAISA we focus at educating more people on the good of insurance which will help them adapt to the system,” he said.
Source: Daily News, reported from Dar es Salaam, Tanzania

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