EAC delegates link supervision of insurance sector

Oil workers at Kigogole-5 oil well in Buliisa District. Countries like Iran and China have been pointed out as interested in the oil investment. PHOTO BY FRANCIS MUGERWA. 

By  PAUL TAJUBA

Kampala- Regional insurance industry players have taken strides that will eventually enable them operate in East Africa with minimum or no barriers at all.

This followed an establishment of a set of guidelines that will not only allow the industry players to transfer capital and expertise across the region without legal challenges but also allow regional industry regulators to jointly supervise industry actors across the East African Community countries.

With the new insurance manual, the EAC sector authorities will work towards strengthening their oversight role, including cooperating and coordinating with other supervisory bodies such as the central banks and government ministries.

“We believe that with the development of such cross border supervision guidelines, the insurance industry will grow and develop confidence in issuance claimants,” Mr Ibrahim Kadunabi, the Insurance Regulatory Authority (IRA) Uganda boss, said.

Currently, EAC member states lack a common formal mechanism for sharing information and reviewing activities related to cross border operations undertaken by the issuance entities within the region.

But in order for the proposed manual to work, other contributors like good political will, same currency for quick transfer of capital and regional central bank cooperations have to be established.

Mr Sammy Makove, the commissioner of insurance in Kenya, said his country has already put in place laws in conformity with EAC member states.

The insurance association also intends to supervise financial institutions and avoid arbitrations that may occur in cross border insurance and avoid double compensation of claimants