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Insurance industry premiums top UGX1.6 trillion

BE Editor 8th Jul, 2024 Financial Services Edward Kayiwa
Insurance industry premiums top UGX1.6 trillion

IRA CEO Kaddunabbi says increase investment and innovative products as well as more public awareness have shifted public perception about the insurance industry.


The Ugandan insurance sector displayed remarkable resilience and growth in 2023, with Gross Written Premiums (GWP) increasing by 11.3% to reach UGX1.6 trillion year-on-year. This performance, highlighted by the new Insurance Regulatory Authority (IRA) report, highlights the sector's strength and strategic advancement.

According to IRA, the non-life insurance segment recorded GWP of UGX932 billion, up from UGX 898 billion in 2022, reflecting a 3.79% growth. Life insurance, however, saw a more substantial rise, with premiums climbing from UGX 501.6 billion in 2022 to UGX611.4 billion in 2023, marking a significant 22% growth.

This increase underscores a growing awareness among Ugandans about the importance of long-term financial security, according to Ibrahim Kaddunabbi Lubega, the IRA CEO. “This growth demonstrates the resilience of our industry and the increasing recognition of insurance’s value among Ugandans,” he said.

  • Health Membership Organizations (HMOs), offering facility-based medical insurance, experienced substantial growth, with premiums rising from UGX 38.2 billion in 2022 to UGX 56.3 billion in 2023, a 47% increase. This surge highlights the expanding demand for health insurance coverage. Additionally, microinsurance, essential for providing financial protection to vulnerable populations, grew by about 16%, generating UGX707 million in 2023, up from UGX 611 million the previous year.

On the other hand, non-life insurance accounted for 58% of the total market premiums, a slight decrease from 62% in 2022. Life insurance's market share increased to 38% from about 35%. The faster growth in life insurance indicates a positive trend among middle-income Ugandans towards prioritizing long-term financial security.

Kaddunabbi said efficient claims payment remains a priority for the industry, fostering trust and satisfaction among policyholders. In 2023, gross claims paid across life, non-life, and HMOs totaled UGX820 billion, accounting for 51% of the total GWP. This marks a significant increase from UGX618.71 billion paid in 2022.

  • “The primary reason for insurance is to provide assurance that losses will be compensated. Efficient claims payment builds trust and confidence in the sector, leading to increased premiums and industry growth,” noted Kaddunabbi.

According to Sunday Protazio, the director for strategy and market development, brokers played a vital role in the distribution of insurance products, collecting UGX541.22 billion in premiums in 2023, a 19.34% increase from UGX 453.51 billion in 2022. He said brokers accounted for almost 34% of the total premiums, underscoring their critical role in providing expert risk management advice.

“Bancassurance also showed strong growth, with premiums collected through this channel increasing by almost 26% to UGX 179 billion in 2023,” he said.

Kaddunabbi said several factors contributed to the sector’s positive growth, including enhanced distribution channels, increased digital engagement, improved claims payment, and a growing middle class. He said the stable macroeconomic environment, with inflation contained at an average rate of 3.2%, also provided a favorable backdrop for the industry.

Strategic investments and innovative products defined the market in 2023, in addition to significant public awareness campaigns that have shifted public perception positively about insurance. “It is rare to open a newspaper or switch on the radio without encountering messages about insurance. This increased visibility is positively impacting the sector,” Kaddunabbi remarked.

  • He expressed optimism for continued growth over the medium to long term. With expected public sector investments, innovations like Marine Insurance, and enhanced public trust, the sector is projected to maintain a growth rate above 10%.
  • “With continued effort and collaboration, as well as public investment in areas that drive insurance uptake, we will achieve great things,” he said.

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