EAC countries harmonise their insurance regulations
Uganda, Kenya, Tanzania, Rwanda and Burundi have agreed to harmonise their regulations around the 26 insurance principles issued by the International Association of Insurance Supervisors.Uganda, Kenya, Tanzania, Rwanda and Burundi have agreed to harmonise
their regulations around the 26 insurance principles issued by the International Association of Insurance Supervisors.
"The next phase of the process will entail the development of capacities for cross border supervision of insurance companies which operates in two or more of the partner states of East African Community (EAC)," said Bank of Uganda governor Emmanuel Mutebile last week, quoted by New Vision.
He added that an insurance company from one partner state would still require a
from the relevant local regulator in order to operate in another partner state.
The development of a common market in the East African Community is expected to boost competition and allow insurance companies to reap from the economies of scale to become more efficient, thus improving the sector's penetration in the region.
According to figures from the insurance authorities, Tanzania’s sector penetration is the lowest among the big three EAC member states at less than 1.0 per cent of the gross domestic product.
Tanzania's penetration represents 0.86 per cent of GDP, against one and three percent in Uganda and Kenya respectively.