Uganda’s insurance sector records 36% increase in claims payments

He noted that the country’s total insurance premiums showed good growth. This indicates increased public confidence and relevance to the regional economy.

Uganda’s insurance sector paid out UGX 820.47 billion in claims in 2023, increasing significantly by 36.84% to UGX 599.59 billion in 2022. This growth reflects a combination of factors. Including the wider use of insurance products. Improved public confidence and the efforts of the sector.

“We are seeing incentive growth in gross written premiums. This highlights the sector’s resilience and ability to attract new business. This increase in premiums is mainly due to the sector’s strategic focus on expanding insurance awareness. and various companies that push products that suit a variety of needs in the fields of health, agriculture, and property…”

Hon. Musasizi attributed the sector’s robust performance in part to government-led initiatives aimed at promoting insurance uptake. A standout program is the Agriculture Insurance Premium Subsidy a subsidy that has proven essential for Ugandan farmers. Launched to help farmers manage agricultural risks, the subsidy cushions them against unpredictable losses from drought, floods, and other climate-related risks, enhancing the security of Uganda’s food supply.

“By making agricultural insurance affordable, the government is not only supporting individual farmers but also stabilizing Uganda’s agricultural economy,” Musasizi explained. The subsidy program is particularly crucial for smallholder farmers, many of whom previously lacked the financial security to absorb significant crop losses. With insurance protection, these farmers are now better equipped to withstand adverse events, ensuring greater economic stability and food security for the nation.

In a strategic move to improve healthcare access for all Ugandans, the government is preparing to launch the National Health Insurance Scheme (NHIS). The minister emphasized the scheme’s importance, describing it as a “vital initiative” that will make quality healthcare accessible and affordable to all Ugandans, especially low-income households who struggle with high medical costs.

Once launched, the NHIS will enable Ugandans to access essential health services without facing the financial hardship often associated with out-of-pocket healthcare payments.

The proposed NHIS will also expand health insurance offerings, creating new business avenues for the insurance sector. Insurers expect an influx of health-related policies that will not only bring in revenue but also create a healthier, more productive workforce, which could lead to broader economic gains.

Meanwhile, with Uganda’s population becoming increasingly aware of insurance benefits, Musasizi expects continued expansion in the sector, particularly in life, health, and agricultural insurance. The government’s emphasis on sectoral development and favourable regulatory environment will likely maintain Uganda’s upward insurance trajectory.