Uganda’s insurance sector experienced substantial growth in the first half of 2024, with total gross written premiums reaching Shs 933.8 billion (approximately US$249 million), according to the latest sector report from the Insurance Regulatory Authority (IRA).
This marks a significant 12.6% increase from the Shs 828.9 billion recorded in the same period last year, highlighting the sector’s resilience and its expanding role in the national economy.
Speaking at the launch of the report, IRA Chief Executive Officer Kaddunabbi Ibrahim Lubega commended the insurance industry’s performance, stating, “The growth seen in the insurance sector during this period is a clear indicator of increased economic activity. It demonstrates the sector’s ability to withstand market challenges while continuing to serve as a key pillar in our economic landscape.”
The non-life insurance segment, which includes policies covering property, liability, and health, contributed Shs 542.3 billion, a modest 6.3% growth from Shs 510.1 billion in 2023. Meanwhile, the life insurance segment recorded significant momentum, producing Shs 357.8 billion, up 22.9% from Shs 291 billion in the previous year. This sharp increase in life insurance uptake reflects growing public awareness of the importance of securing the future for individuals and their families.
Health Membership Organizations (HMOs), which cater to medical coverage, also saw a notable increase, generating Shs 33.1 billion compared to Shs 27.3 billion last year—a 21.2% rise.
Microinsurance Gains Traction
One of the standout performers in the sector was microinsurance, a relatively new product that focuses on low-income earners and small businesses. It generated Shs 0.613 billion in the first half of 2024, a remarkable 32.52% jump from Shs 0.463 billion in the previous year. This demonstrates growing confidence among Ugandans in securing their assets and future through accessible insurance options.
Kaddunabbi underscored the importance of microinsurance in promoting financial inclusion, stating, “Microinsurance plays a crucial role in providing a safety net for the most vulnerable members of society. Its continued growth shows that more Ugandans are recognizing the value of affordable insurance, and we are committed to expanding its reach.”
A significant portion of the premiums during this period came through brokerage firms, which generated Shs 298.3 billion, up 15.6% from Shs 257.8 billion in 2023. Brokers now account for 31.9% of the total insurance premium, a slight increase from 31.1% last year, further solidifying their role as important intermediaries in the industry.
Bancassurance—insurance products offered by banks—also recorded a significant boost, with premiums rising by 28.5% to Shs 107.5 billion, compared to Shs 83.6 billion in the first half of 2023. The growing synergy between the banking and insurance sectors has proven to be a powerful driver of insurance penetration, with bancassurance now a key component of Uganda’s financial services landscape.
Kaddunabbi emphasized that these distribution channels are vital to the industry’s growth.
“The collaboration between banks and insurance firms is a testament to the power of partnerships. These alliances are bringing insurance closer to the people, enhancing financial security across the country,” he noted.
Sector Outlook and Future Projections
The report highlighted that the non-life insurance sector continues to dominate, holding 58% of the total gross written premiums, though this represents a slight decline from 61.5% in 2023. The life insurance segment increased its market share to 38.3%, up from 35.1%, while Health Membership Organizations accounted for 3.5%, reflecting gradual but steady growth.
The insurance industry also paid out Shs 423.8 billion in claims during the first half of 2024, representing 45.3% of the gross written premiums. This underscores the industry’s ability to meet its obligations, further building trust among consumers.
Looking forward, the Insurance Regulatory Authority anticipates continued growth in the sector, driven by anticipated public sector investments in infrastructure projects, particularly in engineering and construction.
These developments are expected to boost demand for insurance coverage, particularly in sectors like construction and manufacturing.
Kaddunabbi also noted that innovations such as improved marine insurance compliance and greater public confidence in the sector will contribute to future expansion.
“We are confident that the sector will maintain a growth trajectory of over 10% as we continue to improve regulatory frameworks, expand access to insurance, and build trust among Ugandans,” he said.
With such positive outlooks and growing participation in the insurance market, the sector is well-positioned to play a crucial role in Uganda’s economic development, safeguarding businesses and individuals alike.
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