Tunisia: Launch of a reform programme for the insurance sector
Insurance companies are urged to create a standing committee on internal audit .The Tunisian General Insurance Committee has announced the start of a reform programme for the country's insurance sector.
President of the committee Hafedh Gharbi said the project - which will continue until 2019 -
aims to modernise the industry's regulatory framework to match international standards, newspaper La Presse reports.
A new specific legislative governance framework will be established to identify, assess, monitor and manage risk, in addition to the application of prudential rules.
Insurance companies are urged to create a standing committee on internal audit as well as a risk committee and a control system.
They are also urged to modernise their management, to strengthen their capital base and to master modern technologies, guaranteeing the application of the rules on governance and transparency.
The insurance penetration, although increasing, remains low at less than one per cent in Africa.
In a new report, rating agency AM Best states that regulatory reforms undertaken in recent years by several African countries have helped facilitate access to African markets.
It expects that the growth of insurance will be in line with economic growth, but this will be dependent on a greater accessibility to various distribution channels (including mobile banking) and product offerings, including Shariah-compliant products.