Business
Insurance industry tops sh2 trillion, but most citizens remain uninsured
New figures released by the Insurance Regulatory Authority (IRA) on Friday, June 26, 2026, show that gross written premiums climbed to sh2.024 trillion in 2025, up from sh1.764 trillion in 2024, representing an annual growth of 14.72 percent.
Insurance industry tops sh2 trillion, but most citizens remain uninsured
By: Nelson Mandela Muhoozi, Journalist @New Vision
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The insurance industry has crossed the sh2 trillion premium mark for the first time in its history, underscoring one of the country’s fastest-growing financial sectors.
However, beneath the record-breaking performance lies a stubborn reality: insurance remains out of reach for the vast majority of Ugandans.
New figures released by the Insurance Regulatory Authority (IRA) on Friday, June 26, 2026, show that gross written premiums climbed to sh2.024 trillion in 2025, up from sh1.764 trillion in 2024, representing an annual growth of 14.72 percent.
The milestone reflects an industry enjoying stronger public confidence, improved claims settlement, digital transformation and expanding distribution networks.
In simple terms, insurers are collecting more money than ever before, but only a small fraction of Ugandans is actually protected against risks such as illness, road accidents, fires, crop failure or death.
Despite the impressive growth, Uganda’s insurance penetration has remained stuck at around 1 percent for years, which is among the lowest rates on the continent.
That paradox is increasingly shaping conversations about the future of Uganda’s insurance market.
Life insurance narrows gap
The biggest surprise in the 2025 results is not the sh2 trillion milestone itself, but the remarkable surge in life insurance.
In simple terms, insurers are collecting more money than ever before, but only a small fraction of Ugandans is actually protected against risks such as illness, road accidents, fires, crop failure or death.
Despite the impressive growth, Uganda’s insurance penetration has remained stuck at around 1 percent for years, which is among the lowest rates on the continent.
That paradox is increasingly shaping conversations about the future of Uganda’s insurance market.
Life insurance narrows gap
The biggest surprise in the 2025 results is not the sh2 trillion milestone itself, but the remarkable surge in life insurance.
Long overshadowed by motor, health and property insurance, life business recorded its strongest growth in recent years, with premiums rising 39.21 percent to sh977.6 billion, up from sh702.25 billion in 2024.
By comparison, non-life insurance, the industry’s traditional backbone, grew by only 1.53 percent, reaching sh1.002 trillion from sh986.48 billion.
Life insurance now contributes 48.31 percent of all premiums written, compared to 39.81 percent a year earlier, while non-life business accounts for 49.49 percent, down from 55.92 percent.
The narrowing gap signals an important shift in how Ugandans perceive insurance.
Rather than viewing it solely as protection after disasters, more households and businesses are increasingly embracing insurance as a tool for long-term financial planning, retirement savings, education funding and wealth preservation.
For an industry that has traditionally struggled to convince Ugandans to buy life cover, the figures suggest changing consumer attitudes and growing confidence in long-term financial products.
Distribution channels fuel expansion
Much of the industry’s growth came from wider access to insurance products. Bancassurance, the sale of insurance through commercial banks, continued to expand rapidly, generating sh302.26 billion in premiums, up 34.33 percent from sh225.01 billion recorded in 2024.
Insurance brokers also strengthened their position, collecting sh564.83 billion, representing a growth of 31.85 percent compared to the previous year.
The figures indicate that insurers are increasingly reaching customers through partnerships instead of relying solely on traditional agency networks.
Digital platforms are also reshaping the market by simplifying policy purchases, claims reporting and customer engagement, while lowering operating costs for insurers.
Microinsurance gains momentum
Another standout performer was micro-insurance, designed for low-income households, informal workers and small businesses. Premiums surged from sh1.64 billion to sh7.33 billion, an increase of nearly 348 percent.
Benerd Obel, the Director of Supervision at IRA, said although the segment still accounts for only a tiny share of the overall market, the rapid growth points to increasing efforts to extend financial protection to populations historically excluded from formal insurance.
Health Membership Organisations, meanwhile, reported premiums of sh30.06 billion, down from sh69.90 billion in 2024 following the transition of AAR from a Health Membership Organisation into a licensed non-life insurer. The regulator says the business remains within the insurance industry under the non-life segment.
Claims payments approach sh1 trillion
Perhaps the strongest measure of an insurance industry’s credibility is not the premiums it collects but the claims it pays.
During the year 2025, insurers settled sh934.55 billion in gross claims, up from sh887.55 billion in 2024. In 2023, insurers settled claims worth sh820.47 billion.
The payouts, equivalent to 46.2 percent of total premiums written, covered thousands of policyholders affected by road crashes, fires, theft, medical emergencies, business interruptions and death.
For many consumers, prompt claims settlement remains the single biggest factor influencing insurance trust.
IRA noted that the rising value of claims demonstrates a stronger and more resilient industry capable of meeting its obligations while reinforcing public confidence.
“Uganda’s insurance sector grew stronger and more resilient in 2025, driven by robust life insurance growth, strong capital adequacy, rising assets and increased claims payments, signs of growing public confidence and a greater role in economic transformation and financial inclusion,” noted Dr Protazio Sande, the acting chief executive officer of IRA.
Stronger balance sheets
The industry’s financial position also continued to improve. Total assets rose to sh3.459 trillion, strengthening insurers' capacity to underwrite larger and more complex risks while supporting investment across the economy.
Capital adequacy remained comfortably above regulatory requirements, with life insurers recording 250 percent and non-life insurers 266 percent, compared to the statutory minimum of 200 percent.
According to Sande, the performance reflects stronger corporate governance, tighter supervision, improved market conduct and continued regulatory reforms aimed at protecting policy holders.
Growth without widespread protection
Despite the encouraging results, industry leaders acknowledge that Uganda still faces its biggest challenge, bringing insurance to ordinary citizens.
Speaking at the fourth Annual Insurance Agents Association convention in Kampala earlier this year, David Wandera, the Head of Bancassurance at Absa Bank Uganda, argued that the industry’s success should not be measured solely by premium growth.
“We are living through a defining shift,” Wandera said, urging insurers to focus less on selling policies and more on delivering meaningful financial protection when customers need it most.
He highlighted the industry’s persistent protection gap, noting that for every sh1,000 spent in Uganda's economy, less than sh9 goes towards insurance.
That statistic illustrates the contradiction facing the sector: while premium income continues to grow at double-digit rate, millions of Ugandans remain financially exposed to unexpected shocks.
Opportunities ahead
The regulator expects industry growth to remain above 10 percent in 2026, supported by stable macro-economic conditions, thereby easing inflation and sustained public investment.
Large infrastructure projects, including the Standard Gauge Railway, preparations for the 2027 Africa Cup of Nations, oil and gas developments, mining, manufacturing and energy expansion, are expected to generate significant demand for engineering, marine, construction, liability and operational insurance.
At the same time, expanding digital platforms, financial inclusion initiatives and tailored products for agriculture and small businesses could help bring insurance closer to millions of first-time customers.
By comparison, non-life insurance, the industry’s traditional backbone, grew by only 1.53 percent, reaching sh1.002 trillion from sh986.48 billion.
Life insurance now contributes 48.31 percent of all premiums written, compared to 39.81 percent a year earlier, while non-life business accounts for 49.49 percent, down from 55.92 percent.
The narrowing gap signals an important shift in how Ugandans perceive insurance.
Rather than viewing it solely as protection after disasters, more households and businesses are increasingly embracing insurance as a tool for long-term financial planning, retirement savings, education funding and wealth preservation.
For an industry that has traditionally struggled to convince Ugandans to buy life cover, the figures suggest changing consumer attitudes and growing confidence in long-term financial products.
Distribution channels fuel expansion
Much of the industry’s growth came from wider access to insurance products. Bancassurance, the sale of insurance through commercial banks, continued to expand rapidly, generating sh302.26 billion in premiums, up 34.33 percent from sh225.01 billion recorded in 2024.
Insurance brokers also strengthened their position, collecting sh564.83 billion, representing a growth of 31.85 percent compared to the previous year.
The figures indicate that insurers are increasingly reaching customers through partnerships instead of relying solely on traditional agency networks.
Digital platforms are also reshaping the market by simplifying policy purchases, claims reporting and customer engagement, while lowering operating costs for insurers.
Microinsurance gains momentum
Another standout performer was micro-insurance, designed for low-income households, informal workers and small businesses. Premiums surged from sh1.64 billion to sh7.33 billion, an increase of nearly 348 percent.
Benerd Obel, the Director of Supervision at IRA, said although the segment still accounts for only a tiny share of the overall market, the rapid growth points to increasing efforts to extend financial protection to populations historically excluded from formal insurance.
Health Membership Organisations, meanwhile, reported premiums of sh30.06 billion, down from sh69.90 billion in 2024 following the transition of AAR from a Health Membership Organisation into a licensed non-life insurer. The regulator says the business remains within the insurance industry under the non-life segment.
Claims payments approach sh1 trillion
Perhaps the strongest measure of an insurance industry’s credibility is not the premiums it collects but the claims it pays.
During the year 2025, insurers settled sh934.55 billion in gross claims, up from sh887.55 billion in 2024. In 2023, insurers settled claims worth sh820.47 billion.
The payouts, equivalent to 46.2 percent of total premiums written, covered thousands of policyholders affected by road crashes, fires, theft, medical emergencies, business interruptions and death.
For many consumers, prompt claims settlement remains the single biggest factor influencing insurance trust.
IRA noted that the rising value of claims demonstrates a stronger and more resilient industry capable of meeting its obligations while reinforcing public confidence.
“Uganda’s insurance sector grew stronger and more resilient in 2025, driven by robust life insurance growth, strong capital adequacy, rising assets and increased claims payments, signs of growing public confidence and a greater role in economic transformation and financial inclusion,” noted Dr Protazio Sande, the acting chief executive officer of IRA.
Stronger balance sheets
The industry’s financial position also continued to improve. Total assets rose to sh3.459 trillion, strengthening insurers' capacity to underwrite larger and more complex risks while supporting investment across the economy.
Capital adequacy remained comfortably above regulatory requirements, with life insurers recording 250 percent and non-life insurers 266 percent, compared to the statutory minimum of 200 percent.
According to Sande, the performance reflects stronger corporate governance, tighter supervision, improved market conduct and continued regulatory reforms aimed at protecting policy holders.
Growth without widespread protection
Despite the encouraging results, industry leaders acknowledge that Uganda still faces its biggest challenge, bringing insurance to ordinary citizens.
Speaking at the fourth Annual Insurance Agents Association convention in Kampala earlier this year, David Wandera, the Head of Bancassurance at Absa Bank Uganda, argued that the industry’s success should not be measured solely by premium growth.
“We are living through a defining shift,” Wandera said, urging insurers to focus less on selling policies and more on delivering meaningful financial protection when customers need it most.
He highlighted the industry’s persistent protection gap, noting that for every sh1,000 spent in Uganda's economy, less than sh9 goes towards insurance.
That statistic illustrates the contradiction facing the sector: while premium income continues to grow at double-digit rate, millions of Ugandans remain financially exposed to unexpected shocks.
Opportunities ahead
The regulator expects industry growth to remain above 10 percent in 2026, supported by stable macro-economic conditions, thereby easing inflation and sustained public investment.
Large infrastructure projects, including the Standard Gauge Railway, preparations for the 2027 Africa Cup of Nations, oil and gas developments, mining, manufacturing and energy expansion, are expected to generate significant demand for engineering, marine, construction, liability and operational insurance.
At the same time, expanding digital platforms, financial inclusion initiatives and tailored products for agriculture and small businesses could help bring insurance closer to millions of first-time customers.