The Insurance Industry in the year 2013: Achievements, Challenges and Agenda for 2014 – The Regulator’s

Perspective

Protazio Sande

Asst. Dir, Mkt Research and Dev’t

April 20, 2023

Outline1) Preamble2) Achievements

Capacity and GrowthRegulatory developmentsSupervision and Compliance

3) Challenges4) Agenda for 20145) Conclusion

April 20, 2023

PreambleCompanies have been resilient in the

face of challenges ….industry expected to grow at a higher rate than in 2012

Strides have been taken in a positive direction in the last 11 months by some companies

Opportunities to leverage our potential exist as we move into 2014

April 20, 2023

Capacity and GrowthInnovations in productsPublic AwarenessTechnical CooperationOil and GasAgricultural InsuranceBancassuranceResearch and DevelopmentParticipation in the regional activitiesNational Health Insurance Schemes

April 20, 2023

Regulatory InitiativesPioneering the establishment of Policyholder

Compensation Fund and the Insurance Appeals Tribunal

Streamlining the operations of the Complaints Bureau

Reviewed the Insurance Regulations, 2002Microinsurance RegulationsMerged the Insurance Act with the Amendment

and a reprint is now availableHMOs: Interim guidelines for Licensing and

supervision and Income & Expenditure Reporting format

Motor Third Party Act and RegulationsApril 20, 2023

Supervision and ComplianceLicensing

National Re-insurance company (Uganda Re)2013 licenses (22 Insurers, 07 HMOs, 30 Brokers, 18 Loss Assessors, 1027 Agents by end of October 2013)

Offsite Inspections Onsite InspectionsCompliance with ICPsEfforts to acquire RBS Software

April 20, 2023

ChallengesCompliance (timeliness in submissions,

data quality/legitimacy)Market conduct issues (Undercutting;

premium remittance; claims settlement…..)

Financial management issues (expense ratios…)

Public awareness/confidence-deficitSlow pace of innovations (new products,

simplified products and processes, markets etc)

April 20, 2023

Challenges cont’d……..Gaps/ Restrictions in the Insurance

ActEnforcement of Workers

Compensation InsuranceMacroeconomic challenges ranging

from high lending rates, volatile Forex market, to high utility tariffs coupled with inflation and falling consumers’ real income.

April 20, 2023

OpportunitiesStrong growth: 6% forecast growth in

economy 2014Strong growth in the service, construction

and manufacturing sectorIncreased investment in infrastructure dev'tMore than average prospects for growth in

agricIncreased commitment to economic

integration in EACRenewed energies in Government

commitment to poverty alleviation.... Microinsurance

April 20, 2023

Agenda for 2014Separation of life and non-life companiesRBS (Financial issues, Governance issues,

Organizational and internal controls); investment in software, skills…

Research into non-convention delivery channels

Compliance : Act, Regulations, Guidelines (significantly lower tolerance for customer detriment; more credible deterrence)

Market Conduct: Premium remittances, Unfair market practices, Claims settlement .. (Monitoring compliance to established standard) April 20, 2023

Agenda for 2014 cont’d…………Engagement of relevant Authorities – NPA to

come up with a National Risk Management Policy; URA for enforcement of Insurance on imports ….

Insurance of Government Assets –planned engagements

Big Qn for 2014: Keeping relevant in an ever changing environment – However good, you can do better

Managing and leveraging a paradigm shift to product and process simplicity

Tighter focus on the root causes of poor customer satisfaction/outcomes April 20, 2023

Conclusive notesI. The success of the Insurance Industry

will be a result of not only the promising momentum of the economy and the business environment in the country, but above all, of the capacity of the companies in this industry to permanently re-invent themselves.

II. Companies which anticipate and plan for change will create their own future. They will dare to innovate and believe in what is new.

April 20, 2023

Conclusion notes cont’dIII. “…..Addressing the concerns of a

Regulator is not the end, as something we put behind us. Rather it must be about putting our traditions behind us and beginning a transformation of how we operate that elevates clients interest, advances openness, spurs innovation, improves services and – most importantly - delivers value based on true relationships….” .

Eliot SpitzerApril 20, 2023

Thanks for your Keen attention

Prosperous 2014

April 20, 2023