Demand for education savings and investment-linked insurance products is emerging as a key driver of growth in Uganda’s life assurance sector, helping Equity Bank Uganda more than double its life insurance premiums to Shs11.72 billion in the second quarter of 2026.
The bank reported that life assurance premiums increased from Shs5.73 billion recorded in the corresponding quarter of 2025, despite a decline in the number of life insurance policies from 75,000 to 65,000.
According to James Sserumaga, Equity Bank Uganda’s Head of Bancassurance, the growth in premium income indicates that customers are increasingly opting for higher-value insurance policies linked to long-term financial planning and investment needs.
Individual life insurance contributed Shs8.97 billion to the total life assurance premiums, highlighting the growing importance of personal savings and investment-oriented products in the bank’s insurance portfolio.
Sserumaga said education-focused insurance policies have become particularly popular among households seeking to prepare for future school fees while building financial reserves over time.
The bank offers insurance-based savings products that allow customers to make regular contributions over a minimum period of five years. The products combine insurance protection with long-term savings, making them attractive to families planning for future financial obligations, particularly education expenses.
Insurance analysts say education and investment-linked products are becoming an increasingly important segment of Uganda’s life insurance industry as households seek reliable alternatives for disciplined long-term saving.
Beyond the growth in premiums, Equity Bank Uganda also reported improvements in policy persistency, an important industry indicator that measures the number of customers who continue paying their premiums over time.
Sserumaga attributed the improvement to proactive customer engagement and follow-up initiatives aimed at encouraging policyholders to maintain their insurance coverage and reducing policy lapses.
The increase in premium income also translated into stronger earnings from life assurance business, with commission income rising from Shs630 million to Shs1.67 billion during the review period.
Meanwhile, claims payments also increased, reflecting the bank’s expanding insurance portfolio. Life insurance claims rose from Shs877 million in the second quarter of 2025 to Shs1.31 billion in the same quarter of 2026.
The increase highlights the role of life assurance in providing financial support to policyholders and beneficiaries when insured events occur.
Industry experts consider claims settlements an important measure of confidence in insurance products, demonstrating the sector’s ability to provide financial protection to individuals and families during periods of loss or hardship.
As competition in the insurance industry intensifies, digital distribution is increasingly being viewed as an important channel for expanding access to life assurance products, particularly among underserved and lower-income communities.
For Equity Bank Uganda, the next phase of expansion is expected to focus on digital delivery channels and microinsurance solutions aimed at widening access to insurance services.
The strategy reflects broader developments in Uganda’s insurance industry, where providers are increasingly exploring innovative ways to improve insurance penetration, promote financial inclusion and encourage households to embrace long-term financial planning.
