The Pensions and Insurance Authority is implementing the 2019-2021 Strategic Plan which has set out the following Strategic Objectives:
(i) To improve the regulatory framework by 2021
The Authority has a mandate to ensure that it creates a conducive regulatory environment for the pensions and insurance industry through the development of an appropriate legal framework. The Authority will therefore focus on the revision of the regulatory framework in order to make it more responsive to the business changing environment and foster stability in the pensions and insurance industry.
One of the critical regulatory functions of the Authority is licensing and registration of pensions and insurance entities as it is the first point of contact for any players coming into the market. Therefore, there is need for continuous improvement in licensing and registration processes to ensure that no unsuitable entities are allowed on the market. This strategic plan (2019-2021) will focus on among other things, the review of licensing and registration requirements and establishing minimum capital requirements for players in the pension industry.
(ii) To improve the supervisory framework by 2021
Prudential supervision remains a core function of the Authority. The aim of prudential supervision is to increase stability of the financial system to ensure safety and soundness.
The Authority uses prudential supervision to ensure market stability of its regulated entities through a risk based approach which is a structured approach which focuses on the identification of potential risks faced by pension schemes and assessment of financial and operational factors in place to minimize and mitigate those risks.
(iii) To accelerate market development by 2021
One of the major hindrances to uptake of pensions and insurance products is the fear among consumers on the level of protection accorded to their interests. Therefore, the Authority has come up with objectives such as Fair Treatment of Customers (FTC) that will ensure pension and insurance providers comply with set regulations and meet their end of the bargain as they fall due.
Further, the development of the industry is greatly influenced by awareness of the public on matters relating to pensions and insurance. As a way of achieving pensions and insurance development and inclusiveness, the Authority has identified public confidence, affordability and accessibility as areas that will need to be improved. The Authority has thus formulated strategies that once implemented are envisioned to result into increased levels of market penetration and accessibility of pensions and insurance products.
The Authority has also identified awareness of pensions and insurance products by citizens as a key aspect to enhancing uptake of pensions and insurance products and has prioritised consumer education as one of the focus areas during the strategic period.
(iv) To strengthen institutional capacity by 2021
The Authority realities that in order to effectively and efficiently implement this strategic plan, the Authority will need to harness its key resources in Human Resource, Finance and Information Communications and Technology (ICT).
Therefore, having a well-motivated, professional and resourceful workforce as well as leveraging on growing ICT sector will play an important role in achieving the targets that have been set out in this plan.