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Meeting on insurance regulation underway

Delegates from seven countries including Malawi, under the International Monetary Funds (IMF)East Africa Regional Technical Assistance Center (Afritac), are meeting in Lilongwe to share experiences and deliberate on the way forward in regulating the insurance sector in the region.

The IMF is working with member countries and donor partners to help build local capacities for sound economic and financial management within the Poverty Reduction Strategy Paper (PRSP) Framework.

During the launch of a five-day workshop in Lilongwe on Monday, Afritac Financial Sector Supervision Advisor, Courtney Christie-Veitch, expressed satisfaction over how some local companies are following regulations.

He said that there are similar tractions on insurance supervision in the East African region as compared to the rest of the world, which, he said, is commendable.

“There is a lot of work that has been done here, which are similar to works being done in the Caribbean, especially on risk-based supervision, which is a very important aspect of supervision.

“Here you are building capacity for the regulators to identify what is significant as an activity for an insurance company and then how to measure the level of significance and also assess the risk to particular insurance companies,” Christie- Veitch said.

He, however, was quick to point out that there is not much being done on reputational risk and strategic risk in the region.

Veitch said that the situation in Malawi, in insurance regulation, is at par with its pears in the region.

Reserve Bank of Malawi Governor, Dalitso Kabambe, who presided over the launch of the workshop, said the meeting was important as countries would be able to draw the future of the insurance industry from experiences.

“This meeting is coming from a background that, globally, we had a financial crisis in 2008 and other people have argued that, if we had very good instruments of monitoring financial entities globally, we should have averted the crisis,” Kabambe said.

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