APA now OK to join Uganda’s insurers

"........Kenyan insurer ,APA has finally got the green light to start its own operations in the country.

Uganda Insurance Commission (UIC) acting Commissioner Bernard Obel told The EastAfrican last week that most of what was required of the company was in place, and it was up to APA to choose when to launch.


“As far as we are concerned, everything is ready,” said Mr Obel.

According to sources familiar with the process, the firm is set to get a licence from industry regulator UIC over “the next few weeks.”

Mr Obel said the UIC board will soon to issue annual licenses for insurance firms in the country, and APA will be among them.

Industry sources reveal that APA has already complied with some of the most important requirements as demanded by the regulators, namely the mandatory capital outlay of Ush1 billion ($507,614) deposited in a commercial bank.

Ten per cent of this figure is subsequently placed in the custody of the central bank.

The regulators were also satisfied with the firm’s treaty programme, which spells out its reinsurance commitments and partners.

Also, APA’s technical and administrative plans are said to be satisfactory.

Uganda Insurers Association chairman Solomon Rubondo says that as long as the new player passes the regulator’s test, the insurance family is ready to accommodate another member.

APA’s entry, however, further tilts the ownership of the industry’s biggest players in favour of foreign interests.

The five locally owned companies — Statewide, Paramount, Leads, Rio and Pax Insurance — are among the smaller players in the relatively small insurance market that has only 21 companies.

 

 

 
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APA Insurance | APA now OK to join Uganda’s insurers

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