Regulator predicts increased insurance uptake due to Coronavirus pandemic

The Insurance Regulatory Authority has said it expects an increased uptake of insurance in the country due to the current Coronavirus pandemic.

While presenting the insurance sector performance for the year ended 2019 in Kampala, the Insurance Regulatory Authority (IRA) Chief Executive Officer, Ibrahim Kaddunabbi Lubega, said whereas the effects of Covid-19 will be felt from second quarter of the year onwards, the pandemic will be a blessing a disguise.

“There are signs of successful containment of the effects of Coronavirus as people slowly return to work. Once the discussions on the stimulus package are actualised, we expect the economy to recover, and insurance to pick,”Kaddunabbi said.

“Coronavirus is likely to improve risk awareness amongst the population because it has demonstrated how devastating an unplanned risk can be.”

The Insurance Regulatory Authority boss explained that the pandemic has provided an opportunity for everyone to know that insurance is an important thing in life.

“In the past, people thought of insurance as a last option but because of Coronavirus, they now take it as a first option,” he said.

According to Kaddunabbi, the regulator expects an increase in uptake for agriculture insurance as farmers look at ways of protecting themselves from such calamities.

“The demand for inclusive insurance solutions especially Agricultural Insurance is expected to grow as people look for more ways of hedging themselves against potential losses arising from risks such as floods, locusts, drought, among others.”

He noted that leveraging on social media and other technological platforms to drive the insurance message will contribute to the much needed insurance-cautious community.