KAMPALA – The East African Insurance Supervisors Association has agreed to develop a regional framework that will supervise activities of insurance companies with operations across the region through countries’ Insurance Regulatory Authorities.
The framework is in line with other regional decisions aimed at East African integration and like other sectors; East African governments are amending or coming up with Bills that fit in those laws available other countries.
“We have a Common Market and other things, so as insurance supervisors, we have to ensure that there is something that can cover insurance companies which operate in more than one country,” Mr Ibrahim Kaddunabbi Lubega, the chief executive officer, Uganda Insurance Regulatory Authority said during a three -day regional insurance players meeting last week.
The regional association further agreed to start supervisory colleges for specified insurance groups, where the regulators will engage the respective boards and senior management of insurance groups in addressing risks related to these groups and observe relevant international association of insurance supervisors.
According to Mr Kaddunabbi, the association will also look into capital, board composition, and management competencies.
The East African Insurance Supervisors’ Association is premised on providing shared advice and exchange of information for supervisory purposes for the promotion of efficient, fair and safe insurance market in the region.
Uganda has 30 insurance companies, Kenya has 53, Tanzania has 31, Burundi has six and Rwanda has 14.
Mr Bonaventure Sangamon Kagaba, the director, National Bank of Rwanda, said such agreements are handy for the creation of a strong and sound insurance industry.
Mr Sammy Makove, the chief executive officer IRA Kenya, said the agreements are important because, “We want to ensure that there is stability in the sector to create other economic benefits.”