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04 Jun 2020

INSURANCE SECTOR POSTS POSITIVE RESULTS FOR THE YEAR 2019

Uganda’s insurance sector has posted positive industry results for the year 2019 with the Gross Written Premium standing at Shs 973.58bn compared to Shs 859.8bs in the previous year. According to the Authority’s Chief Executive Officer Alhaji Kaddunabbi Ibrahim Lubega, this is beyond the initial target of Shs 950bn.

The positive growth was possible due to a number of factors which among others include Strong Economic Fundamentals, that is, Inflation remained below 5 percent, resulting into strong growth in 2019, estimated at 6.3 percent, largely driven by the expansion of services (Averaging 7.6 percent and industrial growth driven by construction and mining averaging 6.2 percent), enhanced Insurance customer confidence in the sector ushered in by a strengthened complaints redress mechanism provided by the Authority and sustained growth in uptake of medical insurance class of business mainly by Corporate Institutions, growing from UShs 204.0billion in 2018 to UShs 219billion in 2019 (Accounting for 22.5 percent of the total GWP).

Given the outbreak of the COVID-19 pandemic, the insurance regulator is optimistic that more innovations are going to emerge to respond to the insurance needs of especially different businesses that have been hard hit by the pandemic. Details in this link...