Business
Insurance brokers struggling to stay relevant
Publish Date: Apr 09, 2014
Insurance brokers struggling to stay relevant
  • mail
  • img
newvision

By David Ssempijja

The local insurance industry is struggling to attain significant penetration levels partly because the public has not yet appreciated the relevance of brokers in the industry, players have said.

According to the chairman Uganda Association of Insurance Brokers (UAIB) Maurice Amogola, despite the essential role insurance brokers play in driving the industry, the biggest section of the insured public connect directly with insurance companies.

“The insurance brokerage industry has a significant role to play in boosting performance of the industry, but there is limited public knowledge about its existence and the services it offers.

This in turn becomes detrimental to the whole sector,” he said on the sidelines of the UAIB Annual General Meeting and awards gala held at Protea Hotel last week.

He revealed that in Uganda, only 40% of insurance policies are bought through brokers compared to the 75% in Kenya and 80% in Tanzania.

Uganda’s insurance industry is worth sh300b with a penetration rate of merely 0.65%, compared to Rwanda at 2.3%, Kenya 2.76% while Tanzania commands a 2.2% penetration rate. Penetration rate indicates the sector’s percentage of the country’s Gross Domestic Product.

The AGM consequently resolved to increase public awareness to enable more people understand and appreciate insurance brokerage and tap into its economic benefits.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Kukustar: New vaccine against newcastle to empower farmers
It was the welcoming smiles. Not the long distance from Mbale town. Not the shrubby path to Mary Goretti Mboizi’s humble home in Bunamwera village, Kibuku district that struck me as I settled down to listen to her story....
Uganda is debt sustainable, says finance ministry
By March, China had lent Uganda over $336m (8% of the total debt) while India had lent over $50m (under 2%)....
Partnership seeks to boost television penetration
PCS and a regional pay television service provider enter a partnership expected to boost television penetration in areas without access to hydroelectricity....
Govt allocates sh20b for restocking
THE Government has allocated sh20b for livestock restocking in West Nile, Acholi, Lango and Teso sub-regions in the 2014/15 financial year...
Power extended to Masaka sub-counties
The sub-counties benefiting from the project are Kyesiga, Lwankoni, Kyanamukaka and Kabira with a total population of about 60,000 people...
UCC urges mobile operators on App for child protection
Telecommunications regulator, Uganda Communications Commission (UCC), has urged local mobile operators to offer a free new application, Guardian App, to its clients as a measure to protect children from online abuse...
What is causing the rise in Early child marriages?
Decaying social structures
Poor Education
None of the above
follow us
subscribe to our news letter