Insurance regulators from six East African countries are moving towards common supervision rules in a push to create a more harmonised insurance market and ease compliance for companies operating across borders.
The East African Insurance Supervisors Association (EAISA), bringing together regulators from Kenya, Uganda, Tanzania, Rwanda, Burundi and the Democratic Republic of Congo, adopted a harmonised insurance core principles assessment template during a recent meeting held in Nairobi.
The template, which includes about 25 principles, will provide a common basis for evaluating supervisory standards, identifying regulatory gaps and promoting peer learning. This sets the stage for closer alignment of supervisory practices, with the regulators agreeing to convene in December 2026.
‘The outcomes of the meetings mark a further step towards a more integrated, coordinated and technology-enabled regional insurance supervisory framework, with stronger emphasis on consumer protection, harmonised regulation and effective cross-border cooperation,’ read the joint communiqué.
The exercise is expected to identify differences in national regulations and supervisory practices that could be addressed as the region moves towards regulatory convergence.
‘This is work in progress. We agreed to carry out assessments against 25 insurance core principles and compare notes in December. The idea is to move towards one market,’ said Godfrey Kiptum, chief executive of Kenya’s Insurance Regulatory Authority (IRA).
The move could reduce regulatory differences for insurers operating in more than one East African market, particularly as companies expand their regional footprints and businesses increasingly operate across national borders.
Kenyan insurers such as Jubilee, Britam, ICEA LION, Old Mutual, CIC, APA Apollo, GA and Mayfair have operations across EAC countries, making the push for common regulations relevant.
‘Having common regulations will make compliance easier for insurance companies operating across multiple EAC countries. Product development will become easier, and it will also make supervision of market conduct more effective,’ Mr Kiptum said.
Closer supervisory cooperation could also improve the handling of risks that require regional responses, including large infrastructure projects, trade-related exposures and natural catastrophes.
Many insurers face an increasingly regional risk environment, with businesses, infrastructure and supply chains operating across borders and exposure to risks such as floods, drought, cyber threats and other climate-related events spreading beyond individual markets.
EAISA meeting approved the development of regional guidelines on insurance complaints management, which are intended to establish common minimum standards for fair and timely handling of policyholder complaints while retaining national legal requirements.
The regulators also approved guidelines for monitoring and evaluation to improve the comparability of insurance market data and support evidence-based supervision.
The association further backed a harmonised approach to digital transformation, with emphasis on interoperability, consumer protection, cybersecurity and improved access to insurance services.
A regional insurance sandbox framework was also muted to give regulators a common approach to overseeing innovation in insurance technology.
The regulators approved the progression of the Regional Integrated Insurance Supervisory Software (RIISS), which is expected to strengthen information sharing and technology-enabled supervision across member regulators.
The initiatives are aimed at reducing regulatory fragmentation as insurers expand across the region and digital products make it easier to serve customers across borders.
EAISA also selected Kenya to host its secretariat for the next five years, giving the association a permanent base for coordinating the implementation of its regional supervisory agenda.