Insurance supervisors in the region have started assessing regional operations of insurers, a move aimed at ensuring that the industry is supervised in a co-ordinated manner.
Ibrahim Kaddunabbi Lubega, the chairman of the East African Insurance Supervisors Association (EAISA), said the move will enhance the stability of the insurance market in the East African Community (EAC) bloc.
“This move has created unique possibilities for co-operation and co-ordination of supervision for cross-border insurance operations for the supervisors and management of systemic and contagion risk by the insurance entities,” Kaddunabbi said while speaking during a press briefing in Kigali last week.
The commencement follows the agreement reached during the supervisors meeting in Kampala, Uganda in August last year.
“During the meeting, the supervisors approved the cross-border and group wide supervision manual for insurance in the region which is now being implemented,” Kaddunabbi explained.
In addition, the supervisors have started work on the preparation of a Market Conduct Supervision Manual. The manual, once completed will guide the surveillance of market conduct activities of insurance registrants in the region.
According to the region supervisors, insurance businesses need to adapt best practices to protect and ensure fair treatment of customers.