Uganda’s insurance sector sees 12.6% growth in gross written premiums

Non-life insurance continues to dominate the market, holding 58% of the aggregate industry written premiums

Kampala, Uganda | THE INDEPENDENT | Insurance companies in Uganda reported gross written premiums of Shs 933.8 billion (approximately US$249 million) in the first half of 2024, according to a sector performance report released by the Insurance Regulatory Authority (IRA) on October 10. This figure represents a robust growth of 12.6% from Shs 828.9 billion recorded during the same period last year.

“This was an impressive growth, which reflects heightened business activities, underscoring the sector’s resilience and its pivotal role in the country’s economic landscape,” said IRA Chief Executive Officer Kaddunabbi Ibrahim Lubega at a news conference.

The report indicates that non-life insurance business generated Shs 542.3 billion, marking a 6.3% increase from Shs 510.1 billion in the previous year. In contrast, the life insurance sector experienced significant growth, producing Shs 357.8 billion—up 22.9% from Shs 291 billion last year. Health Membership Organizations contributed Shs 33.1 billion, an increase from Shs 27.3 billion, representing a 21.2% growth.

Microinsurance picking up

In addition, microinsurance saw impressive results, generating Shs 0.613 billion compared to Shs 0.463 billion last year, a growth of 32.52%. Kaddunabbi hailed the continued growth of microinsurance, stating, “This growth underscores the critical role microinsurance plays in enhancing the financial security of those who need it most. We shall continue to do many studies to ensure microinsurance generates more traction than it is doing today.”

He added, “We have observed over time that people are increasingly getting concerned about what will happen to their future and that of their loved ones… which is why insurance is becoming important.”

During the same period, premiums collected through the brokerage distribution channel amounted to Shs 298.3 billion, up from Shs 257.8 billion, reflecting a 15.6% increase. Brokers accounted for 31.9% of the total insurance premium, a slight rise from 31.1% in the previous year. Meanwhile, bancassurance premiums reached Shs 107.5 billion, up from Shs 83.6 billion, marking a notable growth of 28.5%.

Kaddunabbi described this growth as a remarkable performance that underscores the tremendous potential of mutual partnerships in expanding access to insurance and enhancing financial security for customers.

Market share distribution indicated that non-life insurance continues to dominate, holding 58% of the aggregate industry written premiums, although this figure is lower than the 61.5% reported during the same period last year. The life insurance sector accounted for 38.3% of the total premiums, up from 35.1% in 2023, while Health Membership Organizations represented 3.5%, an increase from 3.3%.

The report also highlighted that gross claims paid for both life and non-life insurance, including HMOs, amounted to Shs 423.8 billion in the first half of 2024, equating to 45.3% of total gross written premiums.

Kaddunabbi attributed the sector’s positive performance to enhanced distribution, acceleration in online transactions, increased customer confidence, and the growth of the middle class.

Looking ahead, the regulator anticipates continued positive developments driven by expected public sector investments in engineering and construction in the latter half of 2024 and into 2025.

Furthermore, Kaddunabbi noted that innovations, such as improved marine insurance compliance and increased public trust in the sector, are likely to contribute to further growth.

“We project that the insurance sector will continue to expand, with growth rates remaining above 10%,” he said.