The Insurance Regulatory Authority (IRA) has announced that a total of 139 companies are licensed to provide insurance services in Uganda. Among these, there are two reinsurers, 20 non-life insurers, eight life insurers, five micro-insurers, two health membership organizations, four reinsurance brokers, and 50 insurance brokers.
Additionally, IRA has granted authorization to 19 bancassurance agents to conduct business this year, along with licensing nine loss assessors, five loss assessors and risk advisors, and five loss adjustors and risk advisors.
Jonan Kisakye, the Chief Executive Officer of the Uganda Insurers Association, expressed optimism about the growth of the insurance sector, highlighting the addition of new members as a significant boost. He particularly noted the expansion in the microinsurance segment, citing the enrollment of three new members in the previous year, including Core Micro-insurance Company and Padre Pio Micro-insurance Company.
According to a recent report by IRA, the insurance industry witnessed substantial growth in the second quarter, with written premiums increasing by 16.5 percent from Shs711.6 billion in the corresponding period of 2022 to Shs828.9 billion by the end of June 2023.
Ibrahim Kaddunabbi Lubega, the CEO of IRA, emphasized that this steady growth reflects the sector’s potential to attract more customers to purchase insurance products. The report highlighted a significant rise in total underwritten premiums in the non-life insurance sector, reaching Shs510.1 billion from Shs446.6 billion, representing a growth rate of 14.2 percent.
Micro-insurance also experienced notable growth, with premiums increasing from Shs317.4 million to Shs462.63 million, marking a growth rate of 45.8 percent. Meanwhile, life insurance registered even faster growth, maintaining its status as one of the fastest-growing segments in the insurance industry.
Non-life insurance continues to dominate the market, holding a market share of 61.6 percent, followed by life insurance at 35.1 percent, with the remaining 3.3 percent distributed among other segments.
IRA underscored the crucial role of insurance brokers in the market, emphasizing their importance in providing product expertise and advising customers on risk management strategies. They urged brokers to effectively communicate their value propositions to the public to increase their market share.
