Ugafode Microfinance Limited has received clearance from the Insurance Regulatory of Uganda (IRA) to sell insurance under the bancassurance arrangement.
The Micro-Deposit taking institution with 27 branches across the country officially received its license on Thursday October 23, 2025, at a media handover ceremony held at the Insurance Tower in Kampala.
Its entrance in this space brings the number of banks that have partnered with insurance companies to sell insurance products through their branch networks to 22.
The IRA Director Supervision, Mr. Benerd Obel who represented the Chief Executive Officer commended Ugafode Microfinance on this great milestone. He noted that the partnership between financial institutions and insurance companies is essential in bridging the protection and accessibility gaps.
He added that leveraging on the wide networks of financial institutions like Ugafode is will increase insurance penetration particularly in the underserved and rural communities across Uganda. ‘’Bancassurance has revolutionized how we approach the distribution of insurance services. It allows how clients access both banking and insurance solutions under one roof ensuring convenience and improved financial security for Ugandans,’’ he said.
He added that this was part of a broader vision of making financial products and services more accessible and affordable for all Ugandans.
“By broadening the distribution channels, we create more opportunities for individuals and businesses to access the insurance products and services they need to protect themselves from unexpected financial shocks,” he noted.
Premiums
Premiums underwritten through the bancassurance channel have been growing steadily over the years from Ugx. 83.34 billion in 2020 to Ugx. 225 billion in 2024, according to available industry statistics.
Mr. Obel also urged Ugafode to maintain ethical standards, saying that bancassurance must be implemented with the customer at the forefront by ensuring transparency, clarity on the terms and conditions of policies, and prompt claims payment.
The Ugafode Chief Executive Officer, Mr. Shafi Nambobi, noted that the institution will harness its widespread branch network to sell insurance products, especially micro health products and agriculture insurance to its clients, who are majorly low-incomes earners.
‘’We are happy that we received bancassurance approvals from both Bank of Uganda and IRA. We are now going to take insurance services to our clients who are majorly in rural areas and do not know about insurance,” he said, adding that the institution will explore products like crop insurance to mitigate risks faced by smallholder farmers who account for 68% of their portfolio.
Mr. Obel applauded Ugafode management for their commitment to participate actively in the micro insurance segment, saying it will go a long way in enabling many Ugandans, especially those who have been locked out by the high insurance premiums, to access insurance so as to protect themselves and their businesses against losses.