Absa, UAP Old Mutual target non-salaried individuals with new medical insurance product

Business

Absa Bank Uganda has partnered with UAP Old Mutual to launch the Absa medical insurance, a policy targeting self-employed and non-salaried individuals in the drive to increase access to health insurance in Uganda.

The policy covers treatment for critical illness, inpatient, optical, dental, maternity, in addition to disability cover, funeral expenses, a wellness programme and international cover for travel outside East Africa and more.

According to the World Bank’s Uganda Human Capital Index for 2020, 15% of Uganda’s population incurs catastrophic health expenditure measured as out-of-pocket spending, which exceeds 10% of household consumption or income.

Absa Bank Uganda’s Managing Director, Mumba Kalifungwa said this is part of their efforts to increase insurance penetration in the country.

“A majority of the population relies on cash payments from savings, the sale of property or crowdfunding to cover unexpected health emergencies, and our motivation for unveiling this product is to play a part in helping more people acquire access to affordable insurance, so as to improve the quality of life of more people in Uganda,”Kakifungwa said.

“As a pan-African bank, Absa Bank Uganda is driven by a deep desire to see Uganda and Africa reach their full potential, and we are playing our part by ensuring that everything we do is underpinned by our refreshed purpose, which is to empower Africa’s tomorrow, together, one story at a time.”

According to the Insurance Regulatory Authority, less than 1% of Ugandans have health insurance and in an effort to increase these numbers, insurance companies have been partnering with banks to tap into the latter’s customer bases to offer affordable and convenient insurance products under the bancassurance model.

Insurance Regulatory Authority’s quarterly reports show that by the first quarter of 2023, bancassurance contributed 9.90% to the insurance industry with Gross Written Premiums of approximately shs41.7 billion, up 22% from the total contribution to the industry in the first quarter of 2022, signalling the growing contribution of bancassurance to increasing access to insurance.

Stephen Chikovore, the Managing Director of UAP Old Mutual said there is need for concerted efforts for all players to help drive insurance penetration in the country.

“A unified effort between different players in both the public and private sectors is required to make a dent in the huge access to emergency healthcare gap in Uganda. We are thankful for partners like Absa Bank Uganda, who are being open and encouraging innovation towards creating products and policies that will have a positive impact on the lives of more Ugandans,”Chikovore said.

During the launch in Kampala, Dr. Paul Kasenene, a nutritionist, and lifestyle and functional medicine practitioner encouraged the public to embrace healthy lifestyles and wellness to minimise the risk of health complications.

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