Insurance firms pushed to formalise governance as competition tightens

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Insurance companies are increasingly compelled to formalise governance structures, embed risk management into daily operations and demonstrate measurable service standards as competition intensifies and regulatory scrutiny deepens.

Samuel Opake Praise, the Head of Risk at NIC General, said insurers can no longer treat compliance as a peripheral obligation.

“In today’s highly regulated environment, insurers must integrate compliance and risk management frameworks into the core of their operational architecture rather than treating them as peripheral functions,” he said.

In that environment, NIC General Insurance Company Ltd has obtained ISO 9001:2015 certification, a global quality management benchmark that underscores the sector’s shifting expectations.

The certification awarded following an audit by Bureau Veritas Certification Holding SAS – UK Branch, covers the provision of general (non-life) insurance services. It confirms that the company’s operational systems meet internationally recognised standards for quality management, documentation control, internal audits and continuous improvement.

Although ISO 9001:2015 certification is voluntary, industry leaders say it is increasingly becoming a competitive differentiator in financial services, where public confidence hinges on transparent processes and reliable claims settlement.

According to Opake, the ISO certification process required a comprehensive review of internal controls, documentation protocols and audit systems across business units. He said the outcome is a more structured and transparent operating model that institutionalises continuous improvement.

“For regulators, partners and policyholders, this certification is assurance that NIC General operates under structured, transparent and quality-driven systems,” he added.

Elias Edu, the Managing Director of NIC General, framed the development within broader industry dynamics rather than corporate celebration.

“As insurers operate in an increasingly complex and competitive environment, disciplined governance, structured processes and measurable performance standards are no longer optional but foundational,” Edu said during a press briefing at their head offices in Kampala on Tuesday.

He noted that the certification reflects the company’s effort to build institutional strength aligned with global best practice while contributing to the credibility of Uganda’s insurance sector.

Uganda’s insurance industry has in recent years faced persistent challenges, including low penetration rates, limited public understanding of insurance products and concerns about delays in claims processing. At the same time, regulators have tightened oversight, requiring insurers to strengthen capital adequacy, compliance frameworks and risk governance.

ISO 9001:2015 is widely regarded as the world’s most recognised quality management standard. It places emphasis on risk-based thinking, customer satisfaction, leadership accountability and evidence-based decision-making. For insurers, these elements translate into clearly documented underwriting procedures, defined claims handling timelines and traceable decision processes.

Betty Matovu, the Head of Non-Life at NIC General, said the certification directly addresses customer expectations.

“Trust remains the cornerstone of the insurance business,” she said. “Customers increasingly demand reliability, efficiency and accountability from their insurers.”

She explained that standardised service processes can improve turnaround times, enhance responsiveness and reduce inconsistencies in claims management which are areas that often shape public perception of the industry.

The audit was conducted by Bureau Veritas, a global testing, inspection and certification organisation operating in more than 100 countries. Edwin Kabuleeta, the Chair at Bureau Veritas, said certification requires verifiable evidence of system integrity.

“In a world where every company claims to be the best, the real question is: how do you prove it?” Kabuleeta said. “With the achievement of ISO 9001:2015 certification, NIC General has demonstrated that its commitment to quality is structured, measurable and aligned with internationally recognised standards.”

He emphasised that ISO certification is subject to periodic surveillance audits, meaning companies must maintain compliance and demonstrate ongoing improvement.

While ISO certification does not automatically resolve industry-wide challenges such as low uptake of insurance products, sector players argue that stronger governance frameworks are necessary to build long-term public confidence.