Insurance brokers; means a person who solicits applications for insurance, collects money by way of premium and acting

in accordance with his agency agreement and may find the registered insurer for who he acts in the issue of insurance cover. Insurance brokers play a significant role in the procurement and negotiation of policies. They also play a role in coverage disputies frequently brokers attempt to assists insured in explain why an insurance carriers coverage position may be wrong. However they also play another role in coverage disputes that means when dispute arises as to whether proper coverage was obtain or whether the terms of the insurance policy match the insureds expectations in many of these instances insurance carriers say quoting. if you didnt get the coverage you thought you were buying, you should talk to your insurance brokers not us. After all they are professionals, they are your agent and if anyone made mistake its them by Kirk.A.Posich. The insurance supervisory Department (ISD) which is an authority visualizing the large opportunities for growth of insurance in Tanzania has been making efforts at widening and deepening the market. It is also aware that competition among companies needs to be guided hence strengthening its unit of inspection on a risk based approach to insure that only those companies with risk profiles will be allocated with more resources in terms of times and analysis of their business. The ISD is still concerned with the market behaviors of some players who abuse the insurance process. In view of this the ISD conducted inspection of the insurance companies and broking firms through Tanzanian insurance acts of 1996 established a working frame work for seven different categories of insurers in addition firms are required to meet share capital and solvency margin requirements and must also hold as certain percentage of its assets in specified investments. Oversight responsibilities have been assigned to Tanzanians insurance supervisory department a government office to oversee the industry. The commissioner appointed to this department is responsible for licensing all new entrants into the insurance seats each year 20 percent of an insurers net profits must be transfers to a capital reserve account. Every company is also required to reinsure a certain percentage of its liabilities with the Tanzania National reinsurance corporation.

The following are the requirements for the registration of insurance brokers according to the act of insurance act no. 18 of 1996 as follows. 1. Insurance brokers, agents and agents for brokers to be registered. 2. Agents to act for one principal only. 3. Insurers and brokers responsibility for agents. 4. Registration of agents. 5. Brokers application for registration. 6. Restriction on brokers officers. 7. Registration requirements of insurance brokers 8. Grant of brokers application 9. Brokers capital requirement 10. Brokers responsibilities and insurance requirements. 11. Brokers records and right access. 12. Brokers responsibilities for premiums 13. Brokers accounts 14. Cancellation of registration. 15. Display of certificate of registration.

The following are the advantages on why the ISD has set up regulatory requirements for insurance brokers. Insurance brokers to be registered Those who elect to engage in such activities must be registered, satisfy various educational requirements, remain accountable for their actions and demonstrate financial responsibility state licensing statues establish minimum eligibility and consumer protection requirements so that individuals and firms who service the insurance needs of consumers are properly qualifies to engage in those activities. Brokers application for registration Licensing laws are designed to increase the likelihood that insurance purchases will obtain products that best meet their needs from qualified persons. Demonstrating competence to sell insurance products and being subject to an appropriate set of consumer protection requirements are absolute necessities, without supervise and regulate the qualifications and actions of brokers designed and reasonably adapted to protect the public from frauds, misrepresentation, and incompetence. Brokers capital requirement It required for stability, availability, reliability in order to insure the relevance of capital requirements in the light of developments in the commodity future markets. ISD imposed additional financial requirements including secondary requirements on risk based capital to be maintained and requirements on maintenance of financial resources in assets. Objectives of regulating insurance business 1. Transforming the insurance industry into a sound and competitive agent for national savings mobilization and development investment channeling. 2. Promoting insurance sector as an effective catalyst for enhanced economic growth. 3. Exempting the industry from undue interferences. 4. Developing efficient, cost effective, comprehensive and customer driver insurance services.