Innovation to boost insurance penetration

Kampala, Uganda | THE INDEPENDENT | The insurance industry has attributed the recent high growth rates in business to the innovation trends, that have seen delivery of services to the public become easier.

The business value, measured by the value of the Gross Underwritten Premiums (the money that the public gives insurance companies for various policies), went up to 1.6 trillion shillings in 2023 from 1.44 trillion the previous year.

Ibrahim Kaddunabbi Lubega, the Chief Executive Officer, Insurance Regulatory Authority of Uganda, said while insurance uptake is still low, there has been more interest in the public and more segments of the community reached largely due to innovation.

It is the importance of these innovations to the growth of the Industry, that the industry seeks to bring together the insurance industry players, innovations industry and the public at the Annual Insurance Week that starts on Monday at the Railway Grounds, Kampala.

Kaddunabbi cites innovations like online insurance products, the electronic payment platform and the reward insurance products by the mobile money companies, among others.

The innovation week is aimed at showcasing the new developments in the industry to the public, but also for the service providers to hear from the people regarding insurance.

The innovations in the industry are also some of the reasons why the insurance sector has survived the recent shocks that affected parts of the economy, including Covid-19, inflation and natural disasters. according to the CEO.

The week will end with an awards ceremony for outstanding innovation by the insurance companies, as well as the most innovative media person.

The awards were organized under the theme, “InsureVate: Igniting Excellence in the Insurance Sector”, with the aim of boosting innovation.

Arthur Mukembo, the head of Future Lab Studio at the Innovation Village, says the Week will enable them listen from the public and find out what they have to do in response, as innovators.

The week is organized in partnership with the Deposit Protection Fund (DPF), the Uganda Insurers Association, the Insurance Training College and the Insurance Brokers Association of Uganda, among others.

Alan Lwetabe, the Director Investments at DPF said they hope to use the event to sensitise the public about the insurance of their deposits held by the various financial institutions, as well as the need to keep their personal information updated.

This comes as the DPF is paying off the customers of ECF Uganda, a microfinance company that was closed last month by the Bank of Uganda.

The DPF insures customer deposits up to 10 million shillings, while any money in excess is a responsibility of the central bank to compensate the depositors.

Lwetabe says because of the challenges of tracing the depositors, only 70 percent of them have so far been traced and paid.

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URN