By Samuel Sanya
The East African Insurance Supervisors Association has created a standardised manual for information sharing to boost regional integration efforts and to enhance financial integrity in the sector.
Companies with sister insurance sector firms will be subject to sections of the new regulations in a bid to limit movement of funds between insurance and non-insurance firms.
Sammy Makove, the Kenya Insurance Regulatory Authority boss, noted that the country has relaxed conditions for non-Kenyans to form and operate insurance firms in the country.
Clauses in the Kenyan insurance laws restricting firms to have Kenyan nationals as majority shareholders have been eased to allow East Africans from Uganda, Burundi, Rwanda and Tanzania to compete.
"We believe that with the development of cross border supervision guidelines the insurance industry will be able to grow," said Kaddunabi Lubega, the Uganda Insurance Regulatory Authority boss.
He made the remarks at an executive meeting of the East African Insurance Supervisors Association (EAISA) top leadership in Kampala where he doubles as chairman.
The guidelines make it possible for a regulator in one country to acquire information from sister regulatory organisation concerning cross border insurance companies.
Isreal Kamuzora, the Tanzania Insurance Regulatory Authority boss, noted that the manual will protect the region against a repeat of the global financial crisis which was sparked off in part by large conglomerates.
"Almost 70% of the manual is ready. This manual will boost confidence in the insurance sector,
"We need the right structures to ensure that members of the East African region are safe to carry out business in a stable environment," he said.
Rwanda's Sangano Kagaba noted that East Africa's insurance sector is closely linked with activity of the Central Banks. He added that cross border supervision is in line Central Bank objectives of financial sector stability.
Source: allAfrica
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