(Kampala) – The Insurance Regulatory Authority (IRA) is preparing to implement marine insurance in Uganda after facing three postponements. The Uganda Revenue Authority (URA) has confirmed that all necessary systems, including those of URA, IRA, and the Uganda Insurance Association, are now fully integrated to facilitate this rollout.
During a stakeholders meeting in Kampala, URA’s acting commissioner for customs, Mr. Asadu Kigozi, stated that all required preparations for the marine insurance rollout have been completed. He emphasized the importance of change management activities aimed at ensuring a smooth transition from international to local insurers.
“Training for stakeholders directly involved is ongoing to ensure a smooth rollout,” Kigozi explained. He noted that although the law was passed, the implementation had been delayed to allow for essential preparations.
The new policy mandates that all importers obtain marine insurance exclusively from Ugandan insurers, marking a significant departure from the current reliance on international providers. The rollout was initially set for July 2022 but was postponed to October 2023 to allow for better integration of all stakeholders’ systems and to address industry concerns.
However, the deadline has now been pushed again, with IRA indicating that full implementation will take place in the third quarter of this year. Mr. Protazio Sande, the IRA director of planning, research, and market development, stated that this policy shift aims to protect importers, many of whom struggle to receive compensation from foreign insurers in case of merchandise issues.
This new marine insurance requirement will be compulsory for all traders importing goods into Uganda. It is expected to expand Uganda’s insurance market, retain premiums within the local economy, and ultimately reduce the cost of doing business.
Mr. Jemba Mulondo, representing importers from the Kampala City Traders Association, expressed support for the new marine insurance policy. He highlighted that successful implementation will require engagement with stakeholders to ensure a smooth transition.
