Insurance Industry in Uganda sees technology as key to growth

"We need to embrace technology as foot soldiers in the industry," Ssempasa remarked. "With so many people now owning smartphones, online sales and internet marketing should be a major focus. Social media advertising presents exciting possibilities. The future lies in technology, as far as I can see."

Her optimism stems from a noticeable shift in public perception towards insurance. Ssempasa attributes this to a rise in general awareness about the insurance sector, its services, and the products offered.

"There's a lot more advertising these days," she observed. "People are receiving their matured policies, building trust in the system, and becoming more aware of insurance options. While our penetration rate is still at 5%, the industry saw a 21% growth in premiums last year."

Regulator

Latimer Mukasa, the chairman of the Uganda Insurers Association's executive committee, emphasized the critical role of insurance agents. "Agents are the backbone of our industry's success, constituting over 60% of the workforce," he said. "They are a crucial and highly visible channel for promoting insurance."

Mukasa cited figures from the 2022 Insurance Regulatory Authority of Uganda market report, which showed a significant increase in both life and general insurance. General insurance premiums rose by 22%, from UGX 736 billion to UGX 898 billion, while life insurance premiums jumped by 26%, from UGX 397 billion to UGX 501 billion. This translates to an estimated overall growth of 21% for the insurance industry.

While acknowledging the expansion of product lines, particularly in medical and motor insurance, Mukasa stressed the association's commitment to fostering an environment that encourages further development in both life and non-life markets.

"As a secretariat, we are particularly focused on strengthening our lobbying efforts through government and parliamentary sector committees," he explained. "We are also creating multi-sector engagement platforms for life insurance providers to drive down costs for banks and other platforms that handle premium deductions for our policyholders. We believe that through these initiatives and others, we can achieve our desired penetration rate of 3%."