Prime
139 companies authorised to offer insurance services
Ibrahim Kaddunabbi Lubega
What you need to know:
- Last year, IRA licenced three new members including Core Micro-insurance Company and Padre Pio Micro-insurance Company
Insurance Regulatory Authority (IRA) has said 134 companies are licenced to conduct insurance services, among which include two reinsurers, 20 non-life insurers, eight life insurers, five micro insures, two health membership organisations, four reinsurance brokers, and 50 insurance brokers.
IRA also indicated that 19 bancassurance agents have been authorized to conduct business this year, while nine loss assessors, five loss assessors and risk advisors, and five loss adjustors and risk advisors, have been licensed.
Mr Jonan Kisakye, the Uganda Insurers Association chief executive officer, said the insurance business was growing, noting that new addition into the industry were a great boost.
“We have seen growth in the microinsurance segment. In 2022, we had members under the micro insurance category. Last year, we saw three new members join Uganda Insurers Association under the micro-insurance,” he said, noting the new members included Core Micro-insurance Company and Padre Pio Micro-insurance Company, which adds value to extending services and creating new product portfolio.
A report by IRA released recently noted significant growth in the second-quarter, with written premiums rising by 16.5 percent from Shs711.6b in the same period in 2022 to Shs828.9b as of end of June 2023.
IRA chief executive officer Ibrahim Kaddunabbi Lubega, said while releasing performance results that the steady growth was reflected in the sector’s potential to attract more customers to purchase insurance products.
The report indicated that total underwritten premiums in the non-life business rose to Shs510.1b from Shs446.6b, representing a 14.2 percent growth.
Micro-insurance continued to grow with premiums rising from Shs317.4m to Shs462.63m, which represented a 45.8 percent growth, while life insurance registered faster growth and remains one of the fastest insurance growth segments.
Non-life continues to account for the biggest market share of 61.6 percent, compared to 35.1 percent for life and 3.3 percent for the rest of the insurance market.
Risk management
IRA has noted that brokers remain critical players in the market to provide product expertise as well as advise customers on risk management.
“We shall continue to implore brokers to sell their value propositions to the consuming public to increase their share,” he said.
