The Uganda Insurers Association has unveiled a three to five-year plan to drive sector penetration to 2.1% of the economy. They hope to do this through harnessing technology and enforcement of insurance related legislation.
By Samuel Sanya
The Uganda Insurers Association has unveiled a three to five-year master plan to drive sector penetration to 2.1% of the economy. They hope to do this through harnessing technology and enforcement of insurance related legislation.
Insurance penetration increased to 0.85% in 2013 after health membership organisations were brought under the supervision of the Insurance Regulatory Authority.
Hitherto, penetration had stalled at 0.65% for over five years. Insurance penetration in Tanzania is 2.3%, Rwanda 1%, while Kenya has the biggest penetration at 3.8%.
Speaking to the media after the 50th UIA annual general meeting at the Kampala Serena Hotel, Miriam Magala, the association’s chief executive officer, said penetration will increase if insurers address the evolving needs of consumers in real time.
We will focus on the pensions sector, the oil insurance pool, the national health insurance scheme, bank assurance and compliance to legislation such as workers’ compensation and insurance on imports and motor third party insurance,” she said.
“The market is undergoing political, social and regulatory changes. We need to adapt to this through innovative products that meet the needs of consumers in time,” she added.
Magala revealed that the industry lost $52m (sh155b) in insurance premiums on imports since the levy was paid to foreign companies in contravention of the Insurance Act.
She said UIA is talking the Uganda Revenue Authority to compel importers to channel their freight insurance to local insurers. UIA is engaging the Government to operationalise workers’ compensation and to streamline motor third party insurance.
Faith Ekudu, the UIA advocacy officer, says more will be done in the next five years to sensitise Ugandans on the benefits of insurance to drive sector growth.
“We anticipate that more insurance companies will move from Kampala to regional centres as the market evolves,” she said.
“We hope to expand our distribution channels through banks, churches, mosques, travel agencies and any other ways that will enable us get closer to potential insurance clients,” she added.
Insurers unveil plan to hit 2.1% penetration