Introduction. In dealing with the subject of barriers to trade in insurance services, I want to state from the outset that these barriers are more complex than barriers to trade in goods due to the fact that:
In dealing with the subject of barriers to trade in insurance services, I want to state from the outset that these barriers are more complex than barriers to trade in goods due to the fact that:
Barriers to trade in Insurance services like any other services are to be analyzed and classified in the four modes of supply. These being : - Mode 1: Cross Boarder Trade - Mode 2 : Consumption Abroad - Mode 3 : Commercial Presence - Mode 4 : Movement of natural persons
The Zambian Insurance Market currently consists of the following;
Some SADC countries in have unlimited third party liabilities on their motor policies this can at times pause great exposure to foreign service providers and this stands as a barrier to foreign service provider who does not want to be unduly exposed.
This is quite a common fact in many of our countries now.
5. Lack of recognition of insurance polices issued by players in other countries.
Eg. A policy holder with a full comprehensive motor policy travelling between countries is required to buy additional cover as he drives through three or four countries.
Regulators in the are not exchanging enough information relating to various aspects of their markets as a result players tend to know of the requirements of the other country when they intend to export their services. Note should be taken that there are efforts to address this by the regulators.
1. There should be increased collaboration and co-operation amongst players and regulators in SADC this will lead to common/similar regulations and standards governing the insurance business in the region. The result of this will be increased crossed boarder trade in insurance services within the region.
2. Creation of smart partnerships by private sector. By working with the locals, the potential investors will easily acclimatize with the work culture and procedures of the host country.
3. Increase co-operation and information exchange amongst the private sector using their associations and information technology i.e. posting of policy document wordings on their websites.
4. Players in the region should take advantage of the frameworks that are being put in place by the various RECs to agree on common regulations regarding the various bottlenecks/barriers. These include;