The Independent Uganda: You get the Truth we Pay the Price
The regulator’s focus is on expanding its customer base and increasing average spending in the insurance sector
Kampala, Uganda | JULIUS BUSINGE | Uganda’s insurance sector has shown steady growth, with underwritten premiums increasing from Shs 711.6 billion in the second quarter of 2022 to Shs 828.9 billion in the second quarter of 2023. This represents approximately a 17% increase during the reporting period, according to the Insurance Regulatory Authority of Uganda’s (IRA) announcement on September 14.
Kaddunabbi Ibrahim Lubega, the CEO of IRA, said this consistent growth is indicative of the sector’s ability to attract more customers and businesses willing to invest in insurance.
He emphasised that insurance is essentially a promise to provide financial protection during times of need, and policyholders rely on insurers to help them recover from unexpected losses or events.
Paying claims is a fundamental part of fulfilling this promise and maintaining trust between policyholders and insurers, according to Lubega.
In terms of specific performance highlights, the non-life insurance segment generated Shs 510.1 billion as of the end of June 2023, compared to Shs 309.8 billion in the first quarter of 2023, marking a substantial 56.8% of the total premiums from the same segment in the entire year of 2022 (Shs 898.10 billion). This represents a 14.2% growth compared to premiums from the second quarter of 2022 (Shs 446.6 billion).
On the other hand, the life insurance business generated Shs 291 billion, up from Shs 147.3 billion in the first quarter of 2023, constituting approximately 58% of the total premiums from the life segment in 2022 (Shs 501.6 billion). This represents a 19.9% growth compared to premiums from the second quarter of 2022 (Shs 242.7 billion).
Health Maintenance Organizations (HMOs) generated Shs 27.3 billion, up from Shs 16.6 billion in the first quarter of 2023, marking about 71.3% of the total premiums underwritten by HMOs in 2022 (Shs 38.3 billion). Compared to the same period in 2022 (Shs 22 billion), this performance reflects a 24.1% growth.
Microinsurance business also saw growth, with Shs 462.63 million generated, up from Shs 117.51 million in the first quarter. Compared to the same period in 2022 (Shs 317.4 million), this represents a 45.8% growth.
In terms of market composition, non-life insurance accounted for 61.6% of the industry’s aggregate premiums, while life insurance constituted 35.1% during the reporting period. Other classes combined accounted for 3.3%.
Regarding intermediaries, brokers collected a gross written premium of Shs 257.8 billion through their distribution channel by the end of June 2023, up from Shs 133.6 billion in the first quarter of 2023. Bancassurance also played a significant role, with a gross written premium of Shs 83.6 billion during the same period, representing a 34.5% growth compared to the second quarter of 2022. Bancassurance contributed 10.1% to the total industry premium in the second quarter of 2023.
Looking ahead, Kaddunabbi said IRA’s focus is on expanding its customer base and increasing average spending in the insurance sector.
The plans, he said, include a further development in life insurance, marine insurance enforcement, motor insurance, public sector investments, agriculture insurance, and the Parish Development Model.
