The insurance industry seeks to adjust its operational and business models to meet new challenges, in response to concerns that losses arising from the effects of the COVID-19 pandemic could be exempted from compensation, as they were not previously part of insurable risks.
The Insurance Brokers Association of Uganda (IBAU) is seeking ways of responding to these new challenges without hurting the business while also maintaining the confidence of the customers, reported The Independent.
For instance, there have been incidences where clients have complained of not being compensated for accidents that took place during curfew hours.
IBAU chairman Solomon Rubondo admits that when COVID-19 broke out, the country was not prepared and the industry did not know how to handle the ensuing risks. These include the closure of businesses and job losses. Mr Rubondo says that it is difficult to evaluate the impact of a pandemic like COVID-19, tell the trends and even determine when the pandemic will come to an end.
Mr Paul Muhame, the CEO of insurance brokerage, Ballpack, appealed to the public to appreciate the changing face of risks as the industry works out the right approaches. He cited the increase in the health risk that has been caused by COVID-19.
However, the chief executive of the Uganda Insurers Association, Mr Paul Kavuma, gives an assurance that while the insurance principles state that a claimant must be free of any offence to be compensated, insurers always give a chance to the client to explain themselves about the circumstances.