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28 May 2019

Insurers urged on micro insurance

In order to stimulate the development of the inclusive insurance in Uganda, insurers have been urged to embrace micro insurance and develop innovative products which will spur the uptake of insurance.

The appeal was made by the Chief Executive Officer of the Insurance Regulatory Authority (IRA) Alhaj Kaddunabbi Ibrahim Lubega while presenting the 2018 industry performance at the CEO’s breakfast meeting at Serena Hotel.

Kaddubnabbi commended the performance of the first specialist micro insurer (Grand Micro Insurance Company) for its contribution of Shs24.3million in the first year of operation out of Shs855.98billion collected by the whole industry in 2018.

“I want to commend Grand Micro Insurance for the efforts it has made and the innovation it has exhibited in providing micro insurance packages, affordable and accessible by our communities. This shows that the potential is high and that more such desired products should be developed for the public. I therefore urge other insurers to re-examine their product development strategies in order to improve their performance in 2019,” Kaddunabbi said.

The IRA developed Micro Insurance Regulations to create a fair regulatory environment for micro insurers emphasizing simplicity of products but without compromise on quality. The regulations aim at promoting consumer protection, provide for flexible distribution channels and ensure there are service standards relating to claim settlement and grievance resolution.

The insurers participating in the Agriculture Insurance Consortium were also urged to interest farmers to utilize government’s insurance subsidy since the subsidy is to be increase in the next financial.

It had been noted that a total of Shs5.24bn was underwritten in 2018 compared to Shs5.20bn in 2017, against the sum insured of Shs387bn in 2018 and Shs235.7bn in 2017.