Uganda's insurance sector players urged to go digital
Mr Alhaj Kaddunabbi Lubega, the Chief Executive Officer of the Insurance Regulatory Authority of Uganda speaks during the 5th annual ICT International Insurance Conference held in Fort Portal City on Thursday. Photo | ALEX ASHABA
What you need to know:
- Mr Lubega noted that digital technology will improve insurance business processes, particularly in risk assessment, claims management, and claims settlement
The insurance sector in Uganda has been urged to transition to digital services to better serve customers. Mr Alhaj Kaddunabbi Lubega, CEO of the Insurance Regulatory Authority of Uganda (IRA), emphasised the importance of embracing digital transformation.
"It is essential to embrace digital transformation to thrive in this competitive landscape. Let us go back to our companies and digitalize our operations. We should not wait for the IRA to issue directives; let us do it voluntarily," Lubega said.
Mr Lubega noted that digital technology will improve insurance business processes, particularly in risk assessment, claims management, and claims settlement.
Mr Saul Sseremba, CEO of the Insurance Training College of Uganda, echoed Lubega's sentiments. "Digitalization will help insurance players enhance customer experience. Today, customers expect personalized, instant services."
Sseremba added that digital tools streamline processes such as underwriting, claims management, and data processing, leading to faster service delivery and reduced operational costs.
"Digitalization also reduces paperwork and enhances service quality. Uganda's insurance penetration rate remains low, at less than 1 per cent. Digital tools offer an opportunity to expand the industry, especially in underserved rural communities," Sseremba said.
However, bureaucratic processes and delays in compensation hinder the growth of the insurance sector.
Mr William Kwemera Ngabo, Deputy Prime Minister for Tooro Kingdom, noted that many people prefer village associations due to their simplicity and effectiveness compared to insurance companies.
"The journey to get compensation is long, and some people end up not getting the money. As a result, many do not see the value of purchasing insurance products. There is too much paperwork, which gives people a negative experience," Ngabo explained.
Despite these challenges, the industry has shown robust growth. In 2023, gross written premiums grew by 11.29 per cent to Shs1.6 trillion, with 134 insurance players authorised to transact.
The National Population and Housing Census (NPHC) 2024 report revealed regional variations in health insurance coverage, with Kigezi leading at 2.9 per cent, followed by Buganda at 1.7 per cent, and Bukedi at 0.4 per cent.
Industry leaders are optimistic that digital transformation will address these challenges and propel the sector forward.
