MICROCAPITAL BRIEF: Uganda’s Insurance Regulator, Making Finance Work for Africa (MFW4A), Access to Insurance Initiative (A2ii) Seek to Expand Access to Microinsurance, Perhaps Mobile Money

The Insurance Regulatory Authority (IRA), Uganda’s insurance industry regulator, reportedly is partnering with Making Finance Work for Africa (MFW4A), a multilateral platform that aims to coordinate financial sector activities among African governments, and the Access to Insurance Initiative (A2ii), a global program hosted by Germany’s international cooperation agency (Deutsche Gesellschaft für Internationale Zusammenarbeit), to create regulation that make access to microinsurance more efficient, mainly for low-income earners. The chairman of Uganda’s Insurance Brokers Association, Latimer Mukasa, reportedly noted that collecting premiums in a cost effective manner is the main challenge facing the country’s microinsurance industry. Mr. Mukasa further noted that exploring mobile money transfers would be beneficial to the industry. IRA CEO Ibrahim Kaddunabbi Lubega reportedly stated that a consultant had been hired to design the new regulation by September 2013.

Financial data for MFW4A and A2ii are unavailable.

By Lena Phillips, Research Associate

About Insurance Regulatory Authority of Uganda (IRA)

Established in 1996, IRA is Uganda’s insurance industry regulator. Its main objectives are to ensure a secure insurance industry through effective supervision, administration and regulation.

About Making Finance Work for Africa (MFW4A)

The Making Finance Work for Africa (MFW4A) Partnership was launched in October 2007 by the G8, a multilateral forum comprised of eight country members. Its mission is the establishment of a common platform for the harmonization and facilitation of financial sector development and knowledge in Africa. The partnership brings together donors, African governments, the private sector and other financial sector stakeholders with the aim of unleashing the potential of Africa’s financial sector in order to drive economic development and reduce poverty across the continent.

The MFW4A partnership is supported by the African Development Bank (AfDB), a multilateral institution based in Tunisia; Agence Française de Développement (AFD), France’s international development agency; Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ), the German federal ministry for economic cooperation and development; CGAP (Consultative Group to Assist the Poor), a US-based nonprofit research and policy center; the Department for International Development (DFID), the United Kingdom’s international aid and development agency; the European Investment Bank (EIB), the European Union’s nonprofit long-term lending institution; the International Monetary Fund (IMF), a US-based organization with 188 country members; the Dutch Ministry of Foreign Affairs; Styrelsen för Internationellt Utvecklingssamarbete, the Swedish government’s international development agency; US Agency for International Development (USAID), a US government agency; and the World Bank Group, a multilateral development bank based in the US.

About Access to Insurance Initiative (A2ii)

Established in 2009, A2ii is run as a partnership among the International Association of Insurance Supervisors (IAIS), a Switzerland-based standard-setting body; CGAP (Consultative Group to Assist the Poor), a US-based nonprofit policy and research centre; Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ), a development agency of the German government; FinMark Trust, a South Africa-based nonprofit committed to financial inclusion; the International Labour Organization (ILO), a UN agency; and the United Nations Capital Development Fund (UNCDF). A2ii’s main objectives are to strengthen the capacity of insurance supervisors, expand access to insurance markets for low-income earners and support the creation of effective regulatory frameworks, mainly in developing countries. Initial funding for the initiative came mainly from the Canadian International Development Research Centre, a corporation owned by the government of Canada, and the US-based Bill & Melinda Gates Foundation. Additional funding and technical assistance was received from FinMark Trust, BMZ and Deutsche Gesellschaft für Technische Zusammenarbeit, the technical cooperation agency of the German government. A2ii’s secretariat is hosted by Deutsche Gesellschaft für Internationale Zusammenarbeit, the international cooperation agency of the German government, on behalf of BMZ. Financial data for A2ii are unavailable.

About Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

Founded in 1975, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is an agency of the German federal government. It seeks to promote sustainable development in 128 countries by providing financial advisory services and funding for various programs. As of 2011, GIZ reported a business volume of EUR 2 billion (USD 2.6 billion).

Sources and Additional Resources:

Monitor.co.ug Article, by Faridah Kulabako,“Insurance regulator drafts laws targeting low income earners,” http://www.monitor.co.ug/Business/Insurance-regulator-drafts-laws-targeting-low/-/688322/1713168/-/vg72bqz/-/index.html

MicroCapital.org Article, 19 February 2013: “MICROCAPITAL BRIEF: Microinsurance Network Expects Industry to Double, Reaching 1b Customers by 2020,” https://www.microcapital.org/microcapital-brief-microinsurance-network-expects-industry-to-double-reaching-1b-customers-by-2020/

MicroCapital.org Article, 15 January 2013: “MICROFINANCE EVENT: Africa Microinsurance Microfinance Conference 2013, March 26-28, 2013, Accra, Ghana,” https://www.microcapital.org/microfinance-event-africa-microinsurance-microfinance-conference-2013-march-26-28-2013-accra-ghana/

MicroCapital.org Article, 13 September 2010: “MICROCAPITAL BRIEF: Asian Development Bank Provides $750,000 Grant for Microinsurance Development in the People’s Republic of China and Mongolia,” https://www.microcapital.org/microcapital-brief-asian-development-bank-provides-750000-grant-for-microinsurance-development-in-the-people%E2%80%99s-republic-of-china-and-mongolia/

MicroCapital.org Article, 22 March 2010: “MICROCAPITAL BRIEF: Kenyan Insurance Regulatory Authority (IRA) Commissions Survey of Microinsurance Market,” https://www.microcapital.org/?s=Insurance+Regulatory+Authority+%28IRA%29&x=0&y=0

MicroCapital Universe Profile: Insurance Regulatory Authority of Uganda (IRA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Insurance+Regulatory+Authority+of+Uganda+%28IRA%29

MicroCapital Universe Profile: Making Finance Work for Africa (MFW4A), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Making+Finance+Work+for+Africa+%28MFW4A%29

MicroCapital Universe Profile: Access to Insurance Initiative (A2ii), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Access+to+Insurance+Initiative+%28A2ii%29

MicroCapital Universe Profile: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Deutsche+Gesellschaft+f%C3%BCr+Technische+Zusammenarbeit+GmbH+%28GTZ%29

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