EAC to harmonise insurance regulations

By Oyet Okwera

East African Community states are in talks to determine how the common market will be implemented in the insurance industry.

The partner states including; Uganda, Kenya, Tanzania, Rwanda and Burundi have agreed to harmonise their regulations around the 26 insurance principles issued by the International Association of Insurance Supervisors.

Emmanuel Mutebile, the Bank of Uganda governor explained that “the next phase of the process will entail the development of capacities for cross border supervision of insurance companies which operates in two or more of the partner states of East African Community.”

Addressing insurance stakeholders recently, Mutebile noted that an insurance company from one partner state will still require a license from the relevant local regulator if it wishes to operate in another partner state.

Mutebile said the development of a common market for all states will intensify competition and allow insurance companies to reap from the economies of scale to become more efficient.

“More competition means that to survive Ugandan insurers must become more efficient and offer their customers better services at lower costs,” Mutebile said.