Uganda's insurance authority adopts risk-based supervision
In Uganda, the Insurance Regulatory Authority (IRA) is to shift from compliance-based supervision to risk-based supervision.In Uganda, the Insurance Regulatory Authority (IRA) is to shift from compliance-based supervision to risk-based supervision.
The objective is to ensure that insurance players maintain adequate capital levels to meet the risks they face while allowing the IRA to allot more time to supervision of riskier sector players,
New Vision reports.
"We already have elements of risk-based supervision, however, the insurance law will have to be amended to allow for a shift to risk-based supervision from compliance-based supervision," said IRA executive director Kadunabbi Lubega told the news source.
"Risk-based supervision will make the local insurance sector as strong as insurance sectors in other countries on the international level," he added.
Uganda's insurance sector remains underdeveloped, with insurance penetration standing at 0.65 per cent, according to official figures released by East African Business Week.
However, recent efforts from the IRA to develop the sector and improve people's perception of insurance seem to
be bearing fruit, with a 20 per cent growth in gross premiums registered in 2012.