Uganda's insurance sector steadily growing, says PS Ggoobi

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Finance ministry permanent secretary Dr Ramadhan Ggoobi has said the insurance sector in Uganda is steadily growing, with gross written premiums reaching approximately sh1.85b.

He noted that this reflects annual growth of about 10%.

He made the remarks in a speech delivered by the ministry's director of economic affairs, Moses Kaggwa, during the inauguration of the board of directors of the Uganda Retirement Benefits Regulatory Authority (URBRA) and that of the Insurance Regulatory Authority (IRA) at the ministry in Kampala on Friday (March 13). 

Ggoobi, however, noted that insurance penetration in Uganda remains below 1% and among the lowest in the region.

"This clearly shows that there is still enormous potential for expansion and innovation within the sector," he said in a statement shared by the ministry on the social media platform X.

He stated that the role of the URBRA board is critical in sector growth.

Ggoobi also said Uganda's transformation under the Ten-fold Growth Strategy requires sustained growth across all sectors of the economy, including retirement benefits and insurance sectors.

"The retirement benefits sector is central to this agenda. Today, the sector contributes over 60% of gross national savings and more than 13% of GDP (gross domestic product)," he said.

Finance minister Matia Kasaija officiated at the inauguration of the two boards and said these sectors play a vital role in safeguarding the financial security of Ugandans, mobilising long-term savings and supporting investment in the country.

"Government remains committed to strengthening the regulatory environment to ensure that both sectors operate with the highest standards of governance, transparency and accountability," he said.

The new board of URBRA is chaired by Henry Balwanyi Magino, who pledged to plug the governance gaps, provide strategic leadership to management and staff and also expand coverage to the informal sector.

The other members of the board are: Prof. Irene Nalukenge, Moses Zziwa, Alex Asiimwe, Florence Kutesa and Musa Lukwago.

The board of IRA, on the other hand, is chaired by Keto Kayemba with Grace Mugabiire as the vice chairman. Sulaiman Ddumba is a member of the board.

URBRA was established to regulate the establishment, management and operations of retirement schemes, while IRA regulates, supervises and controls insurance business in the country.