Traders’ stock that was gutted by fire at St Balikuddembe market in 2011. PHOTO BY JOSEPH KIGUNDDU
By FARIDAH KULABAKO
In Summary
Efficiency. Using mobile money and other money transfer mechanisms would make premium payments more efficient.
As the insurance industry regulator moves to
formulate laws to govern the micro insurance business in Uganda, players
have asked for the incorporation of channels that will enable them to
collect premiums in a cost-effective way.
Speaking at a meeting to launch a project to
develop micro insurance regulations on Tuesday, the Uganda Insurance
Brokers Association chairman, Mr Latimer Mukasa, said although micro
insurance is a key area that will increase insurance penetration levels;
the biggest challenge would be on how to collect premiums from
up-country.
He said since micro insurance targets the low
income earners, it will require that players collect premiums monthly
because most people might not be able to pay the annual premiums at
once; something he believes will be costly for players.
He added that exploring channels like mobile money and other money transfer mechanisms would be good for the industry.
The Insurance Regulatory Authority in partnership
with GIZ – a German government enterprise – Making Finance Work for
Africa and Access to Insurance Initiative is developing micro insurance
regulations to enable insurance companies offer affordable products
tailored towards low-income earners, who have for long viewed insurance
as an elite product.
This follows the amendment of the Insurance Act in 2011 that gave way for the development of micro insurance business in Uganda.
IRA chief executive officer Ibrahim Kaddunabbi
Lubega, said a consultant has been hired to explore the impact the
current policy and regulatory framework has on micro insurance
development. The consultant will also design sub-sector regulations by
September
No comments :
Post a Comment