NBC, TIRA announce operational collaboration of the Trust Account
Commissioner of Insurance who is also the Director of the Tanzania Insurance Regulatory Authority (TIRA) Dr. Baghayo Saqware (third from the left) together with the Managing Director of NBC Bank, Theobald Sabi (third from the right) launching a partnership between the two institutions in the management of Trust Accounts for insurance companies in the country. The partnership was officially announced yesterday in a brief ceremony held in Dar es Salaam and was in line with a seminar for various stakeholders in the insurance sector in the country. Other senior officials from both institutions were also present.
The National Bank of Commerce (NBC) has announced its collaboration with the Tanzania Insurance Regulatory Authority (TIRA) in the operation of Trust Accounts for insurance companies in the country. The move aims to strengthen the management of the insurance sector in line with legal requirements and regulations set by TIRA.
The collaboration was officially announced today in Dar es Salaam during a brief ceremony that went in line with a seminar for various stakeholders in the insurance sector, including senior officials from TIRA, NBC Bank, and representatives from insurance companies, including directors and finance officers.
Speaking about the initiative, the Insurance Commissioner, Dr. Baghayo A. Saqware, who is also the CEO of TIRA, commended NBC Bank for establishing the account, noting that it will help the sector overcome several challenges.
"Previously, one of the challenges was that many insurance companies were using reserve funds for other expenses without TIRA's approval, leading to liquidity issues and sometimes inability to compensate clients due to funds being invested elsewhere," he explained.
He further noted that the decision to open Insurance Trust Accounts at commercial banks is a solution to the challenge, as TIRA will now be able to directly supervise these reserve funds, which will not only improve management but also enhance the development of the insurance sector in the country.
Meanwhile, the Managing Director of NBC Bank, Theobald Sabi, thanked TIRA for giving NBC Bank the opportunity to participate in the establishment of the Insurance Trust Account. He emphasized that the decision to create the account will promote transparency and accountability in the insurance sector.
Sabi applauded the establishment of the account and highlighted its significant contribution to increasing transparency and accountability in the insurance sector, as well as building trust among stakeholders.
"NBC Bank is well-equipped to provide investment advisory services through our Treasury and Capital Markets Department," said Sabi, urging insurance companies in the country to utilize the Trust Account to comply with legal requirements and regulations set by TIRA.
Speaking at the seminar, the Director of Supervision at TIRA, Mr. Abubakar Ndwata, stated that the genesis of the Insurance Trust Account is the Insurance Regulations of 2009, which require insurance companies to deposit security funds amounting to at least 50% of the minimum required capital.
Ndwata explained that in collaboration with the Association of Tanzanian Insurance Companies (ATI), TIRA developed an Investment Liquidity Management Guideline that directed the establishment of the Trust Account through commercial banks. The move was done to address capital challenges and ensure timely compensation of policyholder claims.
