Prime Minister launches Marsh(U)

By Joel Ogwang

A new competitor only serves to improve business. Players in Uganda’s insurance industry should therefore not be worried by the new competition ushered in by the launch of Marsh (U) Ltd. on Tuesday.

Marsh is a wholly-owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global professional services firm offering clients advice and solutions in the areas of risk, strategy and human capital.

In announcing its entry into the burgeoning Ugandan insurance industry, Marsh, also listed on the New York stock exchange, was using Uganda as a springboard for entry into the East African regional bloc, noted Prime Minister, Amama Mbabazi, who presided over the launch at the Sheraton Kampala Hotel.

He urged Marsh to explore the country’s new oil industry. “Your entry into Uganda is therefore timely as your experience and skills in this sector will become handy to Uganda’s nascent oil sector,” Mbabazi said.

The Premier stated that with the restoration of peace and tranquillity by the NRM Government, the insurance industry, like others, picked itself up to become part of the country’s rapid growth the country.

Mbabazi pledged the Government’s dedication to creating a conducive business environment that would attract investors. 

He said this would be done through enacting laws fostering professionalism and efficiency, exemplified by the enactment of the Insurance Amendment Act, 2011 

“In spite of challenges, the industry continues to register impressive growth averaging 20% annually in the last one and a half decades,” the prime minister pointed out.

Kadunabi Lubega, the Insurance Regulatory Authority chief executive, said the entry of Marsh into Uganda couldn’t have come at a better time seeing that the country is experiencing economic growth.

“The prevailing peace makes investment in the insurance and other sectors attractive,” he noted. “This is the reason Uganda’s insurance industry is attracting local and international players.”

Lubega challenged Marsh to ground its vast experience in the global insurance industry garnered from 100 countries, to build Uganda. “We look forward to the values Marsh brings to the market and we (IRA) pledge regulatory guidance to the industry so that players prosper.”

Brian Blick, the Marsh Africa vice-chairperson, noted that with 130 offices around the world, his frustration was the ‘under-weight’ representation the firm had in Africa.

He said Marsh, employing 25,000 people and additional 53,000 global colleagues as Marsh & McLennan Companies, would do best practices and bench-marking of its clients to provide quality services.

As an emerging energy and oil nation, Blick said opportunities and challenges abound for the local insurance industry.

“But Marsh has the experience and expertise to stay in the business,” he said. Kwame Ejalu, the Marsh (U) managing director, said the company seeks to address issues of risk on behalf of its clients and today, leads in insurance broker.

Adding that the soaring demand for sophisticated insurance coverage, made merging with big players like, first, Alexander Forbes and later Marsh, inevitable for the company (initially incorporated as Liberty Insurance Brokers)

“The Ugandan economy continues to be dynamic, especially with the oil and gas industry, liberalization of the pension sector and infrastructure developments. This has increased competition in the insurance industry,” he said.

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Congratulatons MARSH