Despite the low insurance penetration in Uganda, there is a growth potential in the market that can be tapped by various industry players, according to the international professional services firm Deloitte.
There are ongoing discussions between the Insurance Regulatory Authority (IRA) and the Uganda Bankers Association to mobilise and license banking agents to distribute insurance products, particularly in rural areas.
There is a need for insurance players to think about mergers and acquisitions if Uganda is to build a sustainable insurance sector, according to Mr Ibrahim Kaddunabbi, the CEO of the Insurance Regulatory Authority (IRA).
The Uganda Insurers Association (UIA) and the Uganda Healthcare Federation (UHF) have unveiled plans to curb high costs borne by health insurers and medical service providers. They see the trend in costs as threatening the sustainability of the medical insurance branch.
Uganda's insurance sector grew by 16.5% to UGX898.10bn ($241.2m) in the first half of this year in terms of GWP compared to the corresponding half of 2022.
A study conducted by the Insurance Regulatory Authority (IRA) across 18 districts in Uganda has revealed that a significant proportion of commercial farmers, who have the most to gain from agricultural insurance, have not even heard of it. This knowledge gap translates into a mere 5% of sampled farmers who have active insurance policies.
Kenya Re Uganda's subsidiary saw its gross written premiums increase from UGX6bn ($1.7m) in 2020 to UGX13.9bn in 2021 and UGX16.3bn in 2022, according to the Ugandan company's chairman Mr George Steven Okotha.
Uganda's insurance sector recorded a year of strong growth of 20.4% in 2022 compared to 10.61% in 2021, the Insurance Regulatory Authority of Uganda (IRA) has said in a statement.
Savings and credit cooperative societies (SACCOS) present a good potential avenue for the majority of the population to access various products and services such as insurance, especially those at the bottom of the economic pyramid, says Bank of Uganda deputy governor, Michael Atingi-Ego.
The Insurance Regulatory Authority of Uganda (IRA) is greatly concerned about the year-on-year rise in insurance fraud, according to Mr Protazio Sande, the director of planning, research and market development at the Authority.