By CHRISTABEL LIGAMI

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Tanzania has amended its insurance law to give two-thirds ownership of brokerage firms to locals.

The Miscellaneous Amendments Bill (No. 2 of 2017), which has been passed by parliament, amends the Insurance Act (No. 10 of 2009).

The changes require insurance brokers to be at least two-thirds (above 66 per cent) owned and controlled by Tanzanian citizens — a 100 per cent increase from the previous local-participation requirement of one-third or 33 per cent).

Further, it requires customers to pay insurers all premiums directly, even where they are using brokers.

Brokers will only be entitled to receive their commissions directly from the insurers (instead of taking them out of premiums from customers), with heavy penalties for contravention.

Minimum rates
The amendments give the Commissioner of Insurance powers to set minimum rates of premiums payable for different classes of insurance, by publishing the orders in the Government Gazette.

Insurance cover for a Tanzanian resident individual or company may only be placed with a Tanzanian registered insurer.

The changes make clear that all ground transport, marine and air cargo insurance covers for Tanzanian imports must be effected by a Tanzanian insurer.
The government has passed the Fair Competition (threshold for Notification of a Merger)) Order, 2017, amending the Fair Competition (threshold for Notification of a Merger).

Order, 2006, which sets out the thresholds for a merger that are notifiable to the Fair Competition Commission as well as the mechanics of calculation of that threshold.