EAC regulators move to harmonise insurance supervision across six countries

Insurance regulators from six East African Community (EAC) countries have reached an agreement to harmonize the oversight of the insurance sector. They agreed to implement a common framework for assessing insurers, sharing market information and addressing consumer complaints. The decision was made during a two-day meeting in Nairobi on September 17, 2026.

The regulators will use the same core principles in evaluating insurers and establish a regional oversight platform for sharing and comparing data across borders. Most of the measures will be put into action within the next year. This initiative aims to provide a unified standard for evaluating aspects like solvency, market conduct, and claims handling among the six countries.

The move is timely as the region anticipates El Niño rains, which could escalate insurance claims due to flooding, property damage, and other weather-related losses. The closer collaboration would facilitate the monitoring of risks impacting insurance groups across multiple countries and enable a swift response to disasters that transcend national boundaries.

Additionally, the region is exploring the idea of a pool for catastrophic risks, allowing insurers to share the financial burden of major climate-related disasters. This proposal would be discussed further in a broader forum comprising 20 countries. The insurance agreement came at a time when regional business leaders convened in Nairobi for the East Africa CEO and Investment Forum, where the emphasis was on leveraging regional integration to spur investment, production, and job creation.

EAC's eight markets, home to over 300 million people, should be viewed as a singular investment destination, according to Ahmed Farah, Executive Director of the East African Business Council. He emphasized the importance of businesses being able to source across borders, have certifications recognized beyond their home country, and receive payments without undue delays.

The East African Development Bank has disbursed over $300 million to support businesses across the region, with $88 million allocated in 2026. The bank encourages private-sector participants to submit viable projects and is ready to co-finance them alongside governments, commercial banks, and other development finance institutions.

The forum also underscored non-tariff barriers, infrastructure gaps, and delays in implementing regional agreements as hurdles to expanding investment. Regional leaders reiterated that enhancing the movement of goods, capital, and services remains crucial in making the EAC market more accessible to businesses. The insurance reforms and investment discussions are integral to deepening cooperation among EAC member states by establishing common standards that enable businesses and financial institutions to operate across borders with greater consistency.