The Tanzania Insurance Regulatory Authority (TIRA) has partnered with NMB Bank to conduct training on Trust Account operations for insurance companies in the country at Johari Rotana in Dar es Salaam.

The seminar was officiated by Hon. Mudrik Ramadhan Soraga Minister of State Office of the President, Labor, Economy and Investment of the Revolutionary Government of Zanzibar as the guest of honor.

Opening the seminar, Mr. Mudrik Ramadhan Soraga has congratulated the Insurance Regulatory Authority (TIRA) and NMB bank for establishing a Trust Account that will serve the insurance industry.

Hon. Soraga said that the establishment of the Trust Account is a good step that will help strengthen the management of the insurance industry to comply with the legal and regulatory requirements.

Similarly, he said that the procedure that was used initially in the management of bonds was not good which led to TIRA failing to properly manage the yields which were returned to companies from the Central Bank of Tanzania (BOT) after maturity.

He has said that many insurance companies were using the yields in other uses, without obtaining the approval of TIRA, thus leading to liquidity challenges, and sometimes failing to pay compensation to customers due to funds being invested in other projects.

In addition, he noted that the decision to open aa Trust Account in commercial banks is the answer to the challenge, as now TIRA will be able to directly manage the bond yields deposit, which will not only strengthen management, but will also improve the development of the sector of insurance sector in the country.

Speaking in the seminar, the Commissioner of Insurance, Dr. Baghayo A. Saqware has said that the origin of the Insurance Trust Account is the Insurance Regulations of 2009 which requires Insurance companies to keep Security Deposits of at least 50% of the minimum amount of the real paid-up capital.

Dr. Saqware said that last year the Authority in collaboration with the Association of Tanzania Insurers (ATI), agreed to prepare a Liquidity Management and Investment Guidelines which also directed the establishment of a Trust Account through commercial banks to overcome the problem of capital challenges or failure to pay the claims.