A critical examination of developments in the regulation of the Insurance Industry in Botswana

Abstract

A vibrant and well-regulated fi nancial services sector is one of the factors thatlead to the sustainable development and economic viability of a country. Thenon-banking financial services sector is one of the largest sectors in the servicesindustry in Botswana. The insurance industry is a major part of the non-bankingfinancial services sector. Regulation of the insurance industry has evolvedsince independence. At independence, the industry was directly controlledby Government. It is now regulated by an autonomous body responsible foroverseeing the entire non-banking fi nancial services sector. The paper tracesand assesses this development. It argues that autonomous regulation of theinsurance industry is more appropriate for supervision, monitoring andsurveillance of the industry. It is a notable improvement in the regulatoryenvironment, but some problems and challenges that need to be addressed still remain.