Insurance companies pay out shs700bn in claims

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Insurance companies pay out shs700bn in claims
Al Haj Ibrahim Kaddunabbi Lubega

Insurance companies paid out shs727.5 billion in claims in the year ended December 2023, the Insurance Regulatory Authority(IRA) has said.

A claim is a formal request to your insurance provider for reimbursement against losses covered under your insurance policy.

Speaking during the 59th CEOs’ breakfast meeting at Serena Hotel in Kampala on Thursday, IRA CEO, Ibrahim Kaddunabbi Lubega this represented a 5.2% growth in claims paid out.

“Gross claims paid out on account of both life and non-life including HMOs accounted for 45.5% of the total premiums registered in 2023 compared to 40.25% of the total premiums in 2022,” Kaddunabbi said.

These figures indicate that for every shs100 paid in premiums, shs45.5% was paid back in form of claims.

The Insurance Regulatory Authority CEO said these figures are good news to the sector since it gives customers assurance that insurance companies will always pay their claims in case of any the occurrence of the problem insured.

“Insurance companies must be able to pay customers’ claims because we are called all sorts of names if we don’t pay people. Let us use pay claims to use it as an opportunity to prove why we exist or else people will continue calling us all sorts of names.”

Sector continues to grow

According to the data, by the end of December, 2023, insurance companies had generated shs934 billion in form of underwritten premiums for  non-life business, growing by 4% from shs898.1 billion the previous year.

Life insurance businesses on the other hand generated shs636 billion after growing by 47% over the year whereas HMOs underwrote shs56.36 billion growing from shs38.3 billion whereas microinsurance business generated ssh559.7 billion.

Outlook

According to the IRA CEO, the projected future is positive , but told the CEOs of the insurance companies that to benefit from it, alot needs to be done.

He asked them to engage shareholders on more capitalization for market growth and change of business locus among others.

 

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