The Ugandan Insurance Regulatory Authority
("IRA") has released clarification on
its recently published bancassurance guidelines.
Following the publication of the
Insurance (Bancassurance) Regulations, 2017, the IRA published
guidelines on the licensing of financial institutions as
bancassurance agents. These set out the forms and procedures for
the licensing application, application fees, obtaining regulatory
approval from the Central Bank, professional indemnity and other
requirements. Among the requirements was for a financial
institution to have an agency agreement with a minimum of three
non-life and two life insurers.
However, following meetings with the Uganda Bankers Association,
this requirement has been dropped. A financial institution may now
sign up with a single insurer and be licensed to distribute
insurance products solely for that insurer. This allows insurers
the much sought after advantage of an exclusive relationship with a
financial
