IRA’s Mandatory Accreditation for Foreign Reinsurers
The insurance industry in Uganda is experiencing a significant shift with the introduction of mandatory accreditation for foreign reinsurers by the Insurance Regulatory Authority of Uganda (IRA). This policy, designed to enhance regulatory oversight and promote transparency, ensures that only compliant and qualified reinsurers operate within Uganda’s insurance market.
Under this regulation, all foreign reinsurers must obtain accreditation to participate in reinsurance business in Uganda. This accreditation is valid for a calendar year and must be renewed annually to maintain compliance. The requirement applies not only to direct risk cession but also when risks are retroceded through local reinsurers to foreign entities.
How to Get Accredited
Foreign reinsurers seeking accreditation must begin by contacting the Insurance Regulatory Authority of Uganda (IRA). Partners can reach out via the following contact details:
The IRA provides comprehensive guidance on the process, including the submission of applications, supporting documents, and proof of payment. Once all requirements are fulfilled, IRA will carefully study the file and revert with their verdict.
Impact on Reinsurance Operations
The introduction of mandatory accreditation has a direct impact on reinsurance placements in Uganda. For instance, if a local cedant cedes any portion of a risk to a foreign reinsurer, accreditation is a strict requirement. Similarly, when risks are ceded to a local reinsurer, which then retrocedes them to a foreign reinsurer, the foreign reinsurer must also be accredited.
In cases where the limits or sums insured are small, the local cedant may choose to retain 100% of the risk, provided certain conditions are met. These include:
Adhering to premium rating and excess requirements as stipulated by the IRA.
Ensuring the scope of coverage aligns with locally approved policies.
Using locally approved standard policy wordings.
Challenges and Compliance
Accreditation presents both challenges and opportunities for foreign reinsurers. While the process involves navigating regulatory requirements and ensuring timely renewals, it also demonstrates a commitment to compliance, fostering stronger partnerships with local cedants. Accreditation helps enhance market stability by ensuring reliable and efficient claims processing, benefitting all stakeholders in Uganda’s insurance ecosystem.
Frequently Asked Questions
Is accreditation valid indefinitely once obtained? : No, accreditation is valid for a calendar year and must be renewed annually to remain compliant.
Can a local reinsurer enter into a treaty with non-accredited foreign reinsurers?: No, the regulatory authorities mandates that any foreign reinsurer involved in reinsurance placements—whether directly or through retrocession—must be accredited annually.
What happens if accreditation is not obtained?: Accreditation is mandatory. If a foreign reinsurer is not accredited, the local cedant must adapt its operations. This may involve retaining smaller risks entirely or working exclusively with accredited partners.
Key Takeaways
Mandatory accreditation by the regulatory authorities is a pivotal step in creating a transparent and robust insurance and reinsurance framework in Uganda. While it places additional regulatory responsibilities on foreign reinsurers, it ensures greater trust and stability within the market.
For further information, inquiries, or support, foreign reinsurers and stakeholders can contact the Insurance Regulatory Authority of Uganda directly:
This policy change underscores Uganda’s commitment to fostering a well-regulated and trustworthy insurance environment, presenting new opportunities for accredited reinsurers to strengthen their presence in the market.
Tataachi Network positions itself as a strategic insurance and reinsurance network partner bringing together the most robust insurers/reinsurers across the continent, with the mission to simplify, optimize, and secure access to insurance in Africa, regardless of the country or sector of activity.
We understand that operating on a continental scale in Africa means facing complex challenges: regulatory diversity, pricing disparities, logistical constraints… That’s exactly where Tataachi Network steps in—to bring clarity, efficiency, and value.
By partnering with us, you gain access to:
Unified continental coverage: We operate in 40+ African country through carefully selected local partners.
A single point of contact in Douala, to centralize your Global program requests and shorten processing times.
Tailored, compliant, and competitive offerings, aligned with the requirements of local markets and global programs.
Outstanding commercial responsiveness: quotes, documents, and responses provided within strict, pre-agreed timelines.
Seamless integration into your international programs, without complicating your management chain.
Tataachi Network enables re/insurance, brokers and multinational partners accross the world to expand its capacity to cover, advise, and serve its clients across Africa with agility and control.
We invite you to view this alliance as a commercial performance accelerator. Together, we could:
Access new markets that have previously been difficult to reach;
Offer more competitive rates to your clients;
Simplify the management of your cross-border placements.