images

11 May 2019

Insurers underwrote Shs856bn in the year 2018

The Insurance Regulatory Authority of Uganda has today released the performance highlights of the insurance industry registering a 17.51% growth rate from 14.75% in 2017. The industry increased its gross underwritten premium from Shs782.4billion to Ushs856 billion in 2018.   

While releasing the results at a press conference at IRA Boardroom, the IRA Chief Executive Officer Alhaj Kaddunabbi Ibrahim Lubega flanked with IRA’s Top Management, said that non-life insurance business income grew from Shs507.2bn in 2017 to Shs570bn in 2018, life insurance business grew from Shs168bn in 2017 to Shs216.9billion in 2018, Health Membership Organisations (HMO’s) grew from Shs52.7bn in 2017 to Shs69.1bn in 2018 and the licensed dedicated micro insurance organization underwrote Shs24.31million.

The improved performance has been attributed to the enhanced distribution channels like Bancassurance which generated Shs26bn and the use of mobile technologies generating Shs5bn. The IRA has to-date licensed 17 commercial banks as Bancassurance Agents and a number of Insurance Companies have adopted the use of new technological platforms to provide insurance services.

“This growth has also been attributed to the increased Agriculture insurance uptake with Central Region accounting for 39%, Western Region 38 %, Eastern Region 12% and Northern Region accounting for 11%”, said Kaddunabbi advising farmers to take up Agricultural insurance to protect themselves against agriculture related risks such a drought, excess rains etc. 

Government introduced the Agriculture Insurance subsidy to make Agriculture Insurance affordable to farmers and increase access to credit by protecting agriculture loans disbursed by financial institutions from the effects of specified risks in agriculture.