In certain developing markets, insurance and bank
products have been sold together for many years without there being
specific legislation to govern the conduct of banks that sell
insurance products. In this month's legal update we review the
new Insurance (Bancassurance) Regulations (the Regulations) which
were published on 15 March 2019.
Key definitions:
- Bancassurance is a mechanism by which
banks or financial institutions and insurers collaborate to
distribute and market insurance products.
- A bancassurance agent is a bank or
financial institution licensed by the Tanzania Insurance Regulatory
Authority (TIRA) to conduct bancassurance
business.
Within the East Africa region, we have recently seen Kenya adopt
rules that would regulate Kenyan banks offering insurance products,
which were previously regulated as insurance brokers instead of
bancassurance agents or operators.
