Effectiveness of sectoral legislation and regulators in controlling anticompetitive practices in the insurance industry in Uganda and Kenya
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Date
2016
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of Dar es Salaam
Abstract
The researcher through secondary and primary methods obtained relevant information from selected respondents in insurance institutions based on their experience, knowledge of facts, events and opinions about regulation of competition in the insurance industry in Uganda and Kenya. The researcher discovered that, the insurance industry in both countries is highly regulated under the respective regulators with stringent requirements on licensing and compliance regarding: corporate status, financial and technical competence. However, the industry is characterised by prevalence of predatory pricing as well as cartels condoned by the insurance legislation and perpetuated by the regulators and insurance associations. Most of the insurance prices in Uganda and Kenya are determined through collusive action by insurance associations. In Kenya, such practices also manifest despite prohibition by the Competition Act which provides complementary regulation of the industry. The Competition Authority has stepped in to control their prevalence. The insurance industry of Uganda is devoid of such complementary regulation. The researcher found that, the inefficient control of predatory pricing and cartels by the insurance legislation and regulators in the insurance industry in Uganda impedes the significance of liberalisation of the industry. The research advocates for the expeditious passing and implementation of the Competition Bill 2004 of Uganda by highlighting the existing gaps in regulation of the insurance sector. Lastly, the research calls for review of policies, procedures and programs as well as cooperation agreements and practices of insurance associations by Insurance Regulatory Authority of Kenya (IRA-K) to ensure compliance and conformity to competition legislation.
Description
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF KQC117.N34)
Keywords
Antitrust law, Insurance companies, Uganda, Kenya
Citation
Nakwanyi, N. S. (2016) Effectiveness of sectoral legislation and regulators in controlling anticompetitive practices in the insurance industry in Uganda and Kenya, Master dissertation, University of Dar es Salaam, Dar es Salaam