Matambo Presents Insurance Industry Bill

| April 9, 2015

Minister of Finance and Development Planning, Mr Kenneth Matambo, has presented to Parliament a bill which seeks to, amongst others, import all provisions relating to the insurance industry from the Non-banking Financial Institutions Regulatory Act such that all provisions necessary for regulation of the insurance industry are addressed under one act.

The Insurance Industry Bill is an act to provide for the licensing, governance and regulation of all insurers, insurance brokers, insurance agents and representatives operating in Botswana and for matters incidental to or connected therewith.

Mr Matambo said one of objectives of the bill was to increase penalties that have remained the same for over 10years. He said the bill covered a comprehensive combination of concerns pertaining to regulatory issues and national interests.

Mr Matambo said it was drafted after extensive consultation with relevant stakeholders in the insurance industry and their valued inputs captured.

“Throughout SADC insurance regulators have moved and are moving away from compliance based supervision to risk based supervision. This means that the ‘one size fit all’ style of supervision is becoming a thing of the past and this is good. Although a bit painful at the onset, once up and running, even regulated entities appreciate risk based supervision,” he said.

The minister said the Insurance Industry Act of 1987 has been surpassed by developments in the insurance industry with its provisions now inadequate and with several supervisory gaps.

He said the Act was irrelevant to today’s business environment and it was inflexible with the new bill seeking to address all the inadequacies and provide clarity and transparency in the regulatory process.

The Bill has 10 parts and 116 clauses. Mr Matambo said the Bill gave the Regulatory Authority the power to make administrative rules. He also noted that the Bill provided for penalties for unauthorised destruction of documents and prevention of compliance with Act.

The last part of the Bill caters for transitional provisions from the current Act.

Source : Parliament

Source : Botswana Daily News

Category: Business & Finance

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