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Uganda's saving rate sits between 2-5% of its working population, significantly lower than Kenya (23%), Rwanda (18%), and Tanzania (13%). To address this, Jubilee Life launched the Jubilee Smart Save Plan, aiming for a more secure and adaptable saving solution.
Developed through customer feedback, the plan which promises a "Plan B" offers competitive returns on investment and a blend of risk protection and investment benefits.
"Unlike most plans that focus solely on risk or investment, this one combines both," explained Kumar. "If a policyholder passes away, the beneficiary will receive additional benefits on top of their investment over time."
Highlighting the challenges of insurance uptake in Uganda, Dorcus Kuhimbisa, Jubilee Life's COO, called for increased government involvement to boost insurance uptake. Incentives like tax breaks and public awareness campaigns were suggested as solutions.
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The lack of a National Health Insurance Scheme hinders exposure to insurance products, she noted.
"Convincing people to invest requires trust in the system; currently, it's a struggle."
Kuhimbisa also addressed regulatory challenges that hinder the expansion of insurance services, such as stringent anti-money laundering policies and the lack of national IDs among many Ugandans, which limits their access to financial services.
Financial literacy coach Sharon Tumushabe echoed the call for better financial planning. "We can't expect tomorrow to take care of itself," she urged.
"Taking charge is crucial. Don't follow the crowd, chart your own course."
Shifting Mindsets
Financial experts acknowledge that Ugandans traditionally prioritize spending over saving. This might be due to a lack of awareness about financial products or the prevalence of informal social safety nets like extended families.
Tailored Solutions
Jubilee Life's new plan addresses this by catering to those seeking flexibility and security. However, the insurance industry as a whole needs to develop a wider range of products to suit different needs and income levels. Micro-insurance options, for example, could be crucial for expanding financial inclusion.
Financial Education
Financial literacy coach Sharon Tumushabe's message highlights the need for financial education initiatives. Equipping Ugandans with the knowledge and tools to make sound financial decisions she said, is essential for a sustainable saving and insurance culture.