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 that
lead to the sustainable development and economic viability of a country. The
non-banking financial services sector is one of the largest sectors in the services
industry in Botswana. The insurance industry is a major part of the non-banking
financial services sector. Regulation of the insurance industry has evolved
since independence. At independence, the industry was directly controlled
by Government. It is now regulated by an autonomous body responsible for
overseeing the entire non-banking fi nancial services sector. The paper traces
and assesses this development. It argues that autonomous regulation of the
insurance industry is more appropriate for supervision, monitoring and
surveillance of the industry. It is a notable improvement in the regulatory
environment, but some problems and challenges that need to be addressed still
remain.