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01 Sep 2020

INSURANCE SECTOR TO PICK UP FASTER IN THE POST COVID-19 PERIOD

Insurers have been challenged to keep their businesses afloat and remain relevant in the new market conditions while operating in the unprecedented times of COVID-19.

“Reconsider not only processes, products and services you are offering but also the operating models to seize the new emerging opportunities,” said Economists Ramathan Ggoobi, a lecturer at Makerere University Business School (MUBS).

While making a presentation at the 47th virtual CEO’s breakfast meeting under the theme, “Insurance at the Dawn of Covid-19: Analysis of current challenges, responses & opportunities for Insurers in the New Normal”, Ggoobi emphasized that COVID 19 was a great breeding ground for innovation.

“Chances of the insurance sector picking up are higher compared to other sectors. The fact that people have now realized that life and health are more important, and that the opportunities that the pandemic brings like embracing of digital usage are among the factors that explains the likely quick pick up that the insurance industry should ride on,” he said.

Ggoobi noted that Uganda’s economy had been hard hit with between 140,000 to 180,000 formal jobs potentially being lost, and with between 2.3 to 3 million livelihoods made vulnerable due to the existence of the pandemic.

The IRA Chief Executive Officer, Alhaj Kaddunabbi Ibrahim Lubega challenged insurers to start moving away from being responsive to COVID-19 but rather to consider ways of recovering from the after effects of the pandemic.

“You need to address a number of questions such as how to tackle the declining revenue, what technologies can your Companies leverage on to better serve policyholders as well as protect their interests,” said Alhaj Kaddunabbi.