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INSURANCE SECTOR HITS SHS1 TRILLION GWP MARK

INSURANCE SECTOR HITS SHS1 TRILLION GWP MARK AS INSURANCE COMPANIES PAY OUT SHS440BN IN CLAIMS.

The 2020 Insurance Sector Performance Report released by the Insurance Regulatory Authority of Uganda (IRA) indicated that the claims paid out on account of both life and non-life increased by 18.62% from shs374.9 billion in 2019 to shs444.69 billion last year.

“The narrative on performance above remains incomplete if the insuring public is not brought into the equation. Much effort remained focused on streamlining claims processes whilst paying attention to possible fraud. In this regard, it is impressive to note that gross claims paid on account of both life and non-life increased by 18.62 percent,” said Alhaj Kaddunabbi Ibrahim Lubega, the IRA Chief Executive Officer.

According to the performance report, the insurance sector collected shs1.065 trillion in premiums which was an increase from the Shs974.417 billion collected the previous year.

“Overall, the industry remained on a positive growth trajectory growing from UGX 974.417bn in 2019 to UGX 1,065bn in 2020 and posting a 9.34percent growth over the reporting year (13.22percent in 2019). The reduction in growth is a result of slowed business activity with the outbreak of the Covid -19 pandemic” said the IRA CEO.

Details of how different segments of insurance (life, non-life, agriculture, brokerage, HMOs) performed are attached in this press release. The full 2020 market report can be accessed in this link.