Changes planned for Uganda's insurance industry
The Uganda Insurance Commission is planning to make changes to the country's insurance sector.Speaking at a recent meeting with chief executives from the industry, Commissioner for Insurance Ibrahim Kaddunabbi Lubega explained alterations are needed to speed up settlements, the Daily Monitor reports.
In order to do this, the organisation is considering an increase in the minimum paid-up capital required by insurance firms.
Ugandan providers currently need a total of Shs1 billion (€275,653), compared with those in Kenya who must have KShs150 million, or Shs4.2 billion.
It is hoped this change will encourage mergers, strengthen the sector and allow the country to better compete within the East African Community market.
Mr Lubega said: "It is difficult for an insurance company from Uganda to invest across the border because of low paid-up capital."
The Uganda Insurance Commission has a number of objectives, including the supervision and regulation of the nation's insurance sector.