The insurance industry has been implored to build trust, transparency and confidence if it is to maintain relevance among consumers and keep pace with the broader economic growth.
Speaking during the 62nd CEO’s Breakfast meeting the Centenary Bank Managing Director, Mr. Fabia Kasi said building and maintaining trust and transparency are vital attributes insurers should put at the front of their strategies to thrive.
“The commodity you sell is trust; if people don’t trust you, they will not do business with you. Secondly, transparency is key in all aspects including clarity in policy details, pricing, and underwriting criteria,” Mr. Kasi said during the meeting at Serena Hotel, Kampala on November 14, 2024.
The meeting organised by the Insurance Regulatory Authority of Uganda (IRA) was under the theme: Innovative Strategies from Banking: Lessons for the Insurance Sector.
Mr. Kasi also advised industry leaders to creatively think of alternative distribution channels to ease access to insurance services, ensure that the offered services meet customers’ ever-changing needs, and that they are affordable.
He noted that affordability of financial services is a key pillar for financial inclusion.
Mr. Kasi applauded the industry players for collaborating with commercial banks to sell insurance under the bancassurance arrangement which he said has eased access to insurance by commercial bank customers.
Sustainability key
Additionally, he urged the industry to adhere to the Environmental, Social and Governance (ESG) principles for business sustainability.
“Focus should go beyond profits for today but focus on long-term sustainability. What impact is your business having on the environment?
“You need to balance purpose and profit; always ask yourself as a company what is the purpose before you think about profit. Think about shared prosperity for sustainability. With that, you will even generate trust and ensure sustainable industry growth,” Mr. Kasi said.
He also urged industry players to deliberately focus and develop products for the previously underserved and excluded segments of the population like the youth, women, youth, and refugees, saying that they have great potential to support industry growth.
The IRA Chief Executive Officer, Alhaj Kaddunabbi Ibrahim Lubega alluded to the need for the industry to innovate for the underserved and excluded populations and to cultivate trust so as to grow the number of the insured population and deepen penetration.
Insurance penetration is projected to increase to 1.5% by 2030 while the target to insurance density is to increase it from the current Ugx.30,000 to Ugx. 70,000/=.