Insurance premium increases to sh100b
Jun 11, 2006
<br>Insurance companies’ gross premium increased to sh100b last year from sh80.5b in 2004 though percentage growth reduced by almost a half compared to the previous year, the Uganda Insurance Commission (UIC) has said. <br>
By Charles Bwogi
Insurance companies’ gross premium increased to sh100b last year from sh80.5b in 2004 though percentage growth reduced by almost a half compared to the previous year, the Uganda Insurance Commission (UIC) has said.
“Insurers wrote sh.90,965m in premiums, an increase of 12.22% compared to a growth of 24.21% the previous year,†a UIC report said.
The report said non-life business contributed sh85.2b, while life business contributed sh5.3b.
The insurance commissioner, FF. Magezi, attributed the drop in growth to challenges the industry is facing.
“The players’ professional associations should join the commission in the struggle to ensure that their members do not charge rates that are below those approved by the commission or pay commission beyond the rates approved by the commission,†Magezi said.
He said professional associations like Uganda Insurance Association and Uganda Association of Insurance Brokers should sensitise members about good business practices and impose sanctions on those who contravene the code of ethics.
American Insurance Group’s premium increase to sh19.9b from sh18.6b.
United Assurance’s premium rose to sh13.4b from sh12.3b, while Jubilee Insurance’s premium increased to sh12b from sh10b.
As competition grows with the entrance of more companies into the industry, cases of some companies grabbing big clients from their competitors through promising them premium rates that are below those approved by the industry have increased.
Other firms have been accused of paying big commissions to insurance brokers to get business from them, all of which negatively impact on the performance of the industry.
Ends
Insurance companies’ gross premium increased to sh100b last year from sh80.5b in 2004 though percentage growth reduced by almost a half compared to the previous year, the Uganda Insurance Commission (UIC) has said.
“Insurers wrote sh.90,965m in premiums, an increase of 12.22% compared to a growth of 24.21% the previous year,†a UIC report said.
The report said non-life business contributed sh85.2b, while life business contributed sh5.3b.
The insurance commissioner, FF. Magezi, attributed the drop in growth to challenges the industry is facing.
“The players’ professional associations should join the commission in the struggle to ensure that their members do not charge rates that are below those approved by the commission or pay commission beyond the rates approved by the commission,†Magezi said.
He said professional associations like Uganda Insurance Association and Uganda Association of Insurance Brokers should sensitise members about good business practices and impose sanctions on those who contravene the code of ethics.
American Insurance Group’s premium increase to sh19.9b from sh18.6b.
United Assurance’s premium rose to sh13.4b from sh12.3b, while Jubilee Insurance’s premium increased to sh12b from sh10b.
As competition grows with the entrance of more companies into the industry, cases of some companies grabbing big clients from their competitors through promising them premium rates that are below those approved by the industry have increased.
Other firms have been accused of paying big commissions to insurance brokers to get business from them, all of which negatively impact on the performance of the industry.
Ends