By David Ssempijja
The local insurance industry is struggling to attain significant penetration levels partly because the public has not yet appreciated the relevance of brokers in the industry, players have said.
According to the chairman Uganda Association of Insurance Brokers (UAIB) Maurice Amogola, despite the essential role insurance brokers play in driving the industry, the biggest section of the insured public connect directly with insurance companies.
“The insurance brokerage industry has a significant role to play in boosting performance of the industry, but there is limited public knowledge about its existence and the services it offers.
This in turn becomes detrimental to the whole sector,” he said on the sidelines of the UAIB Annual General Meeting and awards gala held at Protea Hotel last week.
He revealed that in Uganda, only 40% of insurance policies are bought through brokers compared to the 75% in Kenya and 80% in Tanzania.
Uganda’s insurance industry is worth sh300b with a penetration rate of merely 0.65%, compared to Rwanda at 2.3%, Kenya 2.76% while Tanzania commands a 2.2% penetration rate. Penetration rate indicates the sector’s percentage of the country’s Gross Domestic Product.
The AGM consequently resolved to increase public awareness to enable more people understand and appreciate insurance brokerage and tap into its economic benefits.
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Insurance brokers struggling to stay relevant