Uganda Insurance Increases By 18.5 Percent To Shs711.6bn

Insurers in Uganda recorded an 18.5% growth in total revenue for the six months ending June.30 to Shs 711.6bn.

The results have been released in Kampala on Aug.18 shows that the non-life business generated Shs406.37bn while the life insurance business generated Shs242.7billion.

Health Membership Organization and voluntary health insurance made Shs21.97bn and Shs40.24bn in the same period.

“This growth is a demonstration of economic resilience in the face of challenges,” said Ibrahim Kaddunabbi, Chief Executive Officer. Insurance Regulatory Authority of Uganda.

Like many developing countries, Uganda to the economy is damaged by a difficult financial environment, characterized by an increase in inflation and costs.

This has been heavily impacted by rising fuel prices, rising domestic food prices due to dry weather across the country, and global production and supply constraints.

The total amount paid for the life and non-life insurance business including HMOs stood at Shs242.5billion, which shows the commitment of the players to honor their demands.

The micro insurance business generated Shs317million, which represents a reduction of 5.4% compared to the same period last year, showing the severity of the economy and how it affected people at the bottom of the financial pyramid.

In terms of market share, non-life insurance accounted for 57% of the total industry revenue, 2.7% lower than the market share index of 59.8% in the corresponding period of 2021.

On the other hand, the life business took 34% of the written premiums, 0.86% more than the market share of 33% in the same period.

Bancassurance growth

Insurance services sold through commercial banks known as bancassurance showed an increase in insurance premiums from Shs49bn to Shs62bn.

Also, the total amount written collected through the brokerage distribution system reached Shs186.3bn, which accounted for 26% of the total amount disbursed in the first half of the year. Brokers are key players in the market as they play an important role in providing professional, value-added risk management advice to their clients.

Kaddunabbi also revealed that the supervisor has worked Insurance Tribunaldigitalisation of insurance claims management of the complaints body, the use of marine insurance, and the introduction of a system for the management of IRA institutions.

A stable market

Mr Kaddunabbi said, as the economy continues to strengthen amid economic challenges and rising investment costs and disposable income, he sees the business growing at around 15% in the next quarter, slowing to 12% by the end of the year. a year.

Last year, the insurance industry in the country recorded a growth of 10% to Shs1.18trillion driven by customer expansion, customer confidence, risk awareness, and middle class growth.

The non-life insurance business increased its written premium from Shs665 billion in 2020 to Shs706 billion last year while the life insurance business increased from Shs324 billion to Shs391.7 billion in the same period.

In comparison, non-life insurance businesses accounted for 59.8% of written business, 2.5 percentage points lower than the market share index of 62.4% in 2020.

On the other hand, the life insurance business took 33.2% of the total amount written, 2.8% higher than the market index of 30.4% recorded last year.

The insurance market in the country has two insurance companies, 21 non-life players, eight companies, two insurance companies, and three. Health Membership Organizations.