Assessment of challenges to compliance with risk-based supervision guidelines in Uganda's insurance sector

Abstract

Compliance with risk-based approach guidelines provided by Insurance regulatory authority of Uganda is an unavoidable requirement for all the insurance companies which is meant to protect the best interests of the consumer in Uganda. The objective of the study was to evaluate the challenges hindering the compliance levels of the insurance companies in Uganda. The study utilized primary data that was collected, cleaned, analyzed, and discussed then conclusions & recommendations were drawn. The results show that complexity of risk management (assessment) is the most challenge represented by (46.58%) of the total responses followed by disclosure of clear and transparent information (30.14%), limited capacity (16.44%) as well as the inconsistent risk appetite (6.85%) of the respondents across all the insurance companies. The research therefore recommends the insurance companies to prioritize the establishment of regular training initiatives aimed at enhancing employees' familiarity and understanding of the approach. Such training endeavors will imbue workers with fundamental compliance principles outlined in the guidelines, as well as devise efficient channels for transparent information disclosure to improve compliance levels.