Opinion and Analysis
Insurance code welcome
Posted Thursday, August 2 2012 at 20:41
The launch this week of a code of conduct and ethics for East African insurance players was a step in the right direction.
The rules are expected to prepare ground for ultimate integration of the region’s insurance services when the common market is finally implemented
While the common market protocol launched two years ago envisages ultimate unification of policies and establishment of a common regulatory body to shepherd the industry, the slow process of amending national laws calls for interim arrangements.
Thus the uniform code of conduct and ethics launched this week creates a semblance of uniformity in the way the region’s underwriters handle their roles in the economy.
It spells out uniform practice for all players in the region with regard to corruption, conflict of interest, confidentiality and disciplinary action.
This means the same reason for a firm gets blacklisted by the Insurance Institute of Kenya forms ground for similar sanction from regulators in Rwanda, Burundi, Uganda and Tanzania.
Up to this point, the move this week to release a uniform code of practice was long overdue.
Going forward, the launch of the region’s code of conduct should in no way substitute the need for expeditious reforms to open up the region’s borders for free exchange of financial services.