The insurance market in Uganda posted gross premiums of UGX1.76tn ($490m) in 2024, 10% higher than the UGX1.60tn chalked up in 2023, according to data from the Insurance Regulatory Authority (IRA).
Microinsurance
IRA CEO Kaddunabbi Ibrahim Lubega attributed the performance to positive growth in the microinsurance segment, according to a statement released by the regulator.
Microinsurance surged by 131.42% in 2024 to UGX1.64bn from UGX700m in 2023. This was largely due to an increase in innovative products, especially in the medical space, which boosted sales.
Non-life and life insurance
Gross written premiums for non-life insurance amounted to UGX987bn in 2024, compared to UGX923bn in 2023, indicating a 5.8% increase. The premium volume indicates that non-life insurance continued to dominate the market with a share of 55.95% in 2024. This is, however, lower than the 58.14% market share in 2023.
The life insurance branch reported gross premiums of UGX702bn in 2024, rising by 14.7% over the UGX612bn in 2023, indicating a 14.7% growth. The segment contributed 39.79% of total premiums, compared to a 38.14% share in 2023.
Health Membership Organisations (HMOs) contributed UGX70bn or 4% to the industry’s GWP, in 2024, posting a 23.8% growth from the UGX56bn in 2023.
Mr Kaddunabbi said that the statistics show that life insurance business was growing steadily.
Market concentration
He also expressed dismay over market concentration. Five companies contributed 60% of the premiums in the non-life insurance branch while three companies generated over 60% of life premiums. The IRA website shows that the Ugandan insurance market consists of 20 non-life insurers, nine life insurers, four microinsurers and two HMOs.
He urged those that cannot inject more capital into their operations to consider mergers to create stronger and competitive companies.