The insurance regulator in Uganda has been developing 10 regulations for the insurance sector that are to be gazetted soon, Mr Ibrahim Kaddunabbi Lubega, the CEO of the Insurance Regulatory Authority of Uganda (IRA), has said.
In an article last week in Daily Monitor, he said that the drafting of the regulations followed the implementation of the Insurance Act 2017, which provided for risk based supervision of insurance business.
Special attention has been given to developing regulations for mobile insurance apps, microinsurance, licensing, payment of premiums, reinsurance, capital adequacy, governance and market conduct, and other prudential requirements, among others.
The regulations focus on a broad range of enforcement tools, but most importantly, are aimed at further protecting and safeguarding the interests of policyholders and stakeholders.
Mr Lubega said, “Our desire at the Insurance Regulatory Authority of Uganda is to ensure that the insurance sector is financially sound, vibrant and trusted.”
2019 and 2020
He said that the supervisory role in 2019 was based largely on three pillars: regulatory discipline, market conduct, and encouraging self-discipline among regulated insurance players.
Continuing into 2020, the new regulatory regime will require highly flexible data models, with actuarial professionals ready to create a convergence process, which will demand technological solutions and enable business investors to forecast their financials.
Technological disruption is an all-embracing agenda, which the IRA will continue looking at in 2020, he said.
Mr Lubega said that as there would be more competition with new entrants into the insurance market, especially InsurTech or FinTechs companies, combined with new rules on capital and solvency, it is more crucial than ever before for insurers to identify all opportunities and allocate capital to generate the highest returns.
In this context, the Authority undertook several initiatives and programmes during 2019 to maximise the efficiency of the insurance sector and to enhance competitiveness in the region.
One initiative is that the IRA in collaboration with the Uganda Revenue Authority and the Uganda Insurers Association, instituted a technical working group to implement a local marine cargo goods strategy. An e-portal system for the local marine cargo /goods in transit insurance has been developed. Effective 1 March 2020, there will be voluntary marine insurance provided locally by insurance companies licensed by IRA while compulsory local purchases shall take effect on 1 June.