While Uganda’s insurance industry has been steadily growing over the past decade, the persistent low penetration rate is worrying industry captains who are now seeking a workable solution that could turn around the tables.
Statistics from the Insurance Regulatory Authority of Uganda (IRA) indicate that insurance penetration stands at 0.86%, which is lower than 2.4% for Kenya, and 2.01% for Tanzania.
Presenting findings of the Public Perception on Insurance in Uganda study at the 63rd CEO’s breakfast meeting, the Deputy Bank of Uganda Governor, Prof. Augustus Nuwagaba said limited insurance awareness, mistrust, and misconception of the relevance of insurance are affecting the growth and penetration of insurance.
The study was commissioned by the Uganda Insurers Association (UIA) with support from Africa Reinsurance Corporation and was undertaken by Reev Consult International and Fireworks Advertising Uganda.
Prof. Nuwagaba urged the industry to intensify awareness about the value of insurance as a critical risk mitigation tool to boost uptake and reignite sector growth.
“The sector has critical gaps that must be closed; limited knowledge and understanding of insurance, mistrust, religious beliefs that God will provide, and culture where people think their relatives are their insurance.
“Unless these are fought through sensitization, insurance cannot grow,” he said at the breakfast meeting organised by IRA at Kampala Serena Hotel on Thursday, April 10, 2025.
He added: “We need to run the insurance industry on Keynesian economics where we intentionally step out, educate people about your services, and create demand through awareness. Don’t wait thinking that customers will come on their own.”
Prof. Nuwagaba also urged the industry to intensify collaboration with banks and ride on their extensive agency network to sell insurance, adopt mobile insurance and adopt internet-based insurance.
Court Government to insure its assets, enact NHIS law
Prof. Nuwagaba further urged the industry to court the government to insure its assets given that it owns most of the assets in the country, saying that this will support sector growth.
Additionally, he advised the industry to push the Parliament to expedite the enactment of the National Health Insurance Scheme (NHIS) Bill into law to further support sector growth and deepen insurance penetration.
“When the Bill is enacted into law, insurance all Ugandans will be forced to come to insurance, and people will realise the importance of insurance,” he said.
The IRA Chief Executive Officer, Alhaj Kaddunabbi Ibrahim Lubega alluded to the need to intensify insurance awareness and to lobby the government to insure its assets, saying they will help push the industry to grow to the desired levels.
About the NHIS, he said the industry is engaging the president and parliament to have it enacted into law. He noted that the NHIS will benefit the ordinary Ugandan most as it will protect them from unexpected and high medical out-of-pocket costs. It will given them an opportunity to pay very affordable premiums and get treatment based on a basic cover.
He further noted that negotiations are in advance stage with the banking industry to allow bank agents sell insurance to ease access.
To tackle the awareness challenge, Mr. Jonan Kisakye, the UIA Chief Executive Officer said the industry plans to roll out an intervention dubbed the Insurance Literacy and Market Development Agenda, that will see the industry undertake joint sensitization initiatives.
“The findings that Prof. Nuwagaba has shared are things that we know as an industry and we have now resolved to act on the recommendations,” he said.
He added: “We have been committing billions of shillings annually on public awareness and sensitization but why are people still insurance illiterate? We believe that the industry is probably not doing something right. We now want to work together so as to educate people and turn them from insurance-lliterates to insurance-literates. They may not be current customers but they may become customers in future. We want future customers who are empowered.”
He said the literacy agenda whose aim will be to inform and to demystify insurance will target the wider public.
The agenda will also see insurance awareness information translated in all local languages that the public understands.