East African countries agree on regional framework for insurance supervision
The EAISA will monitor insurance companies operating in more than one country.The East African Insurance Supervisors Association (EAISA) has announced it is to develop a regional framework that will supervise activities of insurance companies in the East African Community.
The supervision will be carried out through the Insurance Regulatory Authorities of Burundi, Kenya, Rwanda, Tanzania and Uganda.
"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," said Ibrahim Kaddunabbi Lubega, the chief executive officer of Uganda's Insurance Regulatory Authority, quoted by the New Times.
EAISA will start supervisory colleges for specified insurance groups in a bid to address specific risks related to each group. It will look into the capital, board composition, and management competencies of insurance firms.
Bonaventure Sangamon Kagaba, the director of the National Bank of Rwanda, said the initiative will contribute to the creation of a strong and sound insurance industry.