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Target low-income earners to boost insurance uptake, govt tells operators
The state minister for finance in charge of general duties, Mr Henry Musaasizi. PHOTO/ FILE
What you need to know:
- The Insurance Regulatory Authority (IRA) annual performance report for last year indicates that insurance companies paid out Shs564.8 billion in claims.
Government has asked insurance operators in Uganda to critically address the barriers that are contributing to low insurance penetration in the country.
The state minister for finance in charge of general duties, Mr Henry Musaasizi said Thursday that the insurance companies should, among others embrace new technologies and also introduce new products which are affordable to the low income earners.
‘’This has been one of the barriers discouraging people to buy insurance policies,’’ Mr Musaasizi said, arguing that it will help increase the country’s insurance penetration which currently stands at less than one per cent.
The minister made the remarks while addressing insurance experts and operators who attended the third-annual international insurance conference organized by the Insurance Training College at Entebbe.
With 0.8 percent penetration, Uganda’s insurance sector is struggling as compared to her neighbours such as compared to Kenya, Rwanda and Tanzania which stand at 6 percent, 9 percent and 15 percent penetration respectively.
The minister said the companies should also ensure that they pay insurance claims to their respective clients who claim to be paid.
According to him, the delays in paying out insurance claims is another factor discouraging prospective clients to take up insurance policies on the market.
The Insurance Regulatory Authority (IRA) annual performance report for last year indicates that insurance companies paid out Shs564.8 billion in claims.
A claim is a formal request to your insurance provider for reimbursement against losses covered under your insurance policy.
However, the chief executive officer for the Insurance training College, Soul Seremba said they are optimistic that the sector in Uganda is growing and with the oil and gas sector in offing, the insurance sector is expected to register a steady growth.
“We have not seen a drop in our performance. The growth was slightly affected but we have continued to have a positive results despite the impact of the COVID-19 pandemic,”Mr,Serembe said.
