Just two months after taking over former America International Group (AIG) Uganda agents, Lion Assurance has written sh5 billion worth of premiums from the former’s clients.
New Vision broke the news of AIG exiting the Ugandan market late last year. AIG had been one of the four big general insurers in the Ugandan market.
In 2015, it was the third largest insurer commanding 8.84% market share while Lion Assurance was the fourth controlling 7.58% market share, according to the insurance market report by the Insurance Regulatory Authority.
Lion Assurance emerged the best bidder beating six others after AIG called on interested industry players to bid for its agents in October last year the company’s plans to exit.
While speaking during a celebration to mark the takeover of the agents at Kampala Serena Hotel over the weekend, Newton Jazire, Lion Assurance’s managing director said: “From January, we have already written over sh5b premium from former AIG agents”
“Exit of AIG from the market means that Lion Assurance shall move up to the third position in the insurance industry. This gives us the confidence in the market that we are going the right direction. All AIG agents used to contribute 50% of the company’s gross underwritten premium annually,” Jazire said.
In a statement, Lion Assurance chairman, Godfrey Kavuma, hailed AIG Uganda for ‘breaking the ground’ with their phenomenal brand in the East African market and urged the his company management and the entire industry to leverage on opportunities availed by online platforms to increase insurance penetration in the country.
“The opportunities being created through mobile online underwriting platforms are integral for the increase in the market penetration and have led to innovative products from Lion Assurance to such as mobile insurance payments. This is borrowing the leaf from the success of mobile money platforms penetrating the formerly unbanked population,” Kavuma said.
“We anticipate that this mobile online underwriting platform will increase the insurance market penetration from the current 0.85% to a significant percentage similarly, the rise of the middle class will boost the industry as a whole,” he added.
The meet and greet ceremony was majorly attended by former agents of AIG Uganda.