The Role of the Insurance Regulatory Authority of Uganda in Regulating the Insurance Industry

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TABLE OF CONTENT

DECLARATION ............................................................................................................................. i

APPROVAL ................................................................................................................................... ii

DEDICATION ............................................................................................................................... iii

AKNOWLEDGEMENTS .............................................................................................................. iv

LIST OF ABREVIATIONS AND ACRCRONYMS ..................................................................... v

GLOSSARY OF INSURANCE TERMS ........................................................................ .............. vi

TABLE OF CONTENT ................................................................................................................. ix

ABSTRACT ........................................................................... ...................................................... xiii

CHAPTER ONE ........................................................................................................................... 1

INTRODUCTION OF THE STUDY .......................................................................................... 1

1.0 Background to the problem ................................................................................................... I

l .l Statement of the Problem: ................................................ .................. .. ..................................... 4

1.2 General Objective of the study ................................................................................................. 5

1.3 Significance of Study ................................................................................................................ 5

CHAPTER TWO .......................................................................................................................... 7

LITERATURE REVIEW ............................................................................................................ 7

2.1 Introduction .............................................................................................. ................................. 7

2.2 Definition ofTerms .................................................................................................... ............... 7

2.2.1 Insurance ................................................................................................................................ 7

2.2.2 Insurance Industry .................................................................................................................. 7

2.2.3 Insurance Regulation ............................................................. ................................................ 8

ix

2.2.4 Insurance Regulatory Authorities .......................................................................................... 8

2.2.5 Insurance Policy ..................................................................................................................... 8

2.2.6 Insurance Premium ................................................................................................................ 8

2.2.7 Insurance Supervision ..................... ....................................................................................... 9

2.2.8 Stable Insurance Industry ....................................................................................................... 9

2.2.9 Insurance Company ............................................................................................................... 9

2.2.1 0 Insurance Industry Development .......................................................... ............................. 10

2.2.11 Undercapitalization ............................................................................................................ 10

2.2.12 Solvency Margin ................................................................................................................ 10

2.3 Theoretical Literature Review ................................................................................................ 11

2.3.1 Market Correction and Distortion Theory ............................................... ............................ 11

2.3 .2 Market Efficiency Theory .................................................................................................... 12

2.3.4 The Insolvency Danger Theory ........................................................................................... 13

2.3.5 The Protection Theory ......................................................................................................... 13

2.4 General Discussion ................................................................................................................. 14

2.4.1 Global Picture ...................................................................................................................... 14

2.4.2 Insurance Regulatory Authorities ........................................................................................ 14

2.4.3 Solvency Risk Protection ..................................................................................................... 15

2.4.4 Product Regulation ............................................................................................................... 16

2.4.5 Stability ofthe Financial Sector. .......................................................................................... 16

2.4.6 The Protection of Policy Holder ........... ............................................................................... 17

2.4.7 India Insurance Regulatory and Development Authority (IRDA) ....................................... 17

2.4.8 Insurance Regulation in United States of America (USA) .................................................. 18

2.4.9 Insurance Regulation in Kenya ............................................................................................ 19

X

2.4. I 0 Insurance Regulatory Authority and Insurance Development in China ............................ I 9

2.4. I 1 Regulatory and Supervisory Activities in Tanzania .......................................................... 20

2.5 Empirical Studies .................................................................................................................... 22

2.6 Research Gap .......................................................................................................................... 27

2.7 Conceptual Framework ........................................................................................................... 28

CHAPTER THREE .................................................................................................................... 29

REGULATORY REFORMS AND LAWS PUT IN PLACE TO STRENGTHEN THE .... 29

3. I MANDA TORY VEHICLE INSURANCE BILL AND REGULATIONS ............................ 30

3.2 MICRO INSURANCE AND MICROINSURANCE ORGANISATIONS ........................... 3 I

REGULATIONS, .......................................................................................................................... 3 I

3.3 POLICYHOLDERS COMPENSATION FUND REGULATIONS ...................................... 32

3.4 INSURANCE (CORPORATE GOVERNANCE) REGULATIONS ..................................... 33

3.5 INSURANCE APPEALS TRIBUNAL (PROCEEDURE) REGULATIONS, ...................... 34

3.6 THE DRAFT INSURER [CONDUCT OF BUISNESS] REGULATIONS, ......................... 34

3.7THE DRAFT MICRO INSURANCE AND MICROINSURANCE REGULATIONS, .......... 34

3.8 THE INSURANCE [BANCASSURANCE] REGULATIONS, ............................................ 35

CHAPTER FOUR ....................................................................................................................... 36

HOW PRACTICALLY HAS THE INSURANCE REGULATORY AUTHORITY ........... 36

SUPERVISION OF THE INDUSTRY ..................................................................................... 36

4.1 CONSUMER EDUCATION .................................................................................................. 37

4.2 THE GUIDANCE ISSUED TO THE INDUSTRY BY THE INSURANCE ........................ 40

xi

CHAPTER FIVE ........................................................................................................................ 46

CHALLENGES FACED BY THE INSURANCE REGULATORY AUTHORITY OF ............ 46

REFERENCES ............................................................................................................................. 49

ABSTRACT The study is focused on the role played by the insurance regulatory authority on regulation of the insurance industry in Uganda. The insurance regulatory authority has a number of employees and several of them were selected as representative samples. A number of insurance companies were also selected to help in my research. The study sought to find out the role of the insurance regulatory authority in regulation of the insurance industry in Uganda and whether it has carried out its mandate according to the law and required standard. Descriptive research survey was used. The research design employed was purposive random sampling to select members of the insurance regulatory authority of Uganda and a few insurance companies. The findings revealed that the role of the insurance regulatory authority of Uganda had played a significant role in regulation of the insurance industry of Uganda. The study revealed that there was more need to educate consumers on their role and to increase on its mandate so that the insurance companies do not over exploit the consumers to their own advantage.

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APA

Frontiers, E. & WILBERFORCE, M (2022). The Role of the Insurance Regulatory Authority of Uganda in Regulating the Insurance Industry. Afribary. Retrieved from https://afribary.com/works/the-role-of-the-insurance-regulatory-authority-of-uganda-in-regulating-the-insurance-industry

MLA 8th

Frontiers, Edu, and MBONYE WILBERFORCE "The Role of the Insurance Regulatory Authority of Uganda in Regulating the Insurance Industry" Afribary. Afribary, 19 Aug. 2022, https://afribary.com/works/the-role-of-the-insurance-regulatory-authority-of-uganda-in-regulating-the-insurance-industry. Accessed 02 Oct. 2022.

MLA7

Frontiers, Edu, and MBONYE WILBERFORCE . "The Role of the Insurance Regulatory Authority of Uganda in Regulating the Insurance Industry". Afribary, Afribary, 19 Aug. 2022. Web. 02 Oct. 2022. < https://afribary.com/works/the-role-of-the-insurance-regulatory-authority-of-uganda-in-regulating-the-insurance-industry >.

Chicago

Frontiers, Edu and WILBERFORCE, MBONYE . "The Role of the Insurance Regulatory Authority of Uganda in Regulating the Insurance Industry" Afribary (2022). Accessed October 02, 2022. https://afribary.com/works/the-role-of-the-insurance-regulatory-authority-of-uganda-in-regulating-the-insurance-industry