Stakeholders say technology key to insurance penetration

INSURANCE | Technology has been earmarked as the major catalyst to spur insurance uptake and penetration in the foreseeable future.

This insight was shared by Jubilee Life Insurance’s Diana Ndege Ssempasa while speaking on the sidelines of the 13th Annual Insurance Agents Awards at Speke Resort Munyonyo.

The purpose of the awards is to recognise and reward the efforts of the outstanding agents, who double as the engine and face that runs and represents the industry respectively.

“As the foot-soldiers we need to embrace technology. Most of people now have smart phones so we should be doing a lot of online selling, internet sales. Consider avenues like social media Ads. I see the future in technology,” said Ssempasa, who emerged second runners-up Agent of the Year 2023.

She expressed optimism in regard to the growing appreciation of insurance in the country specifically attributing this to the increased awareness about the sector in general, the services and products offered.

“There’s a lot of advertisement now. There are people who have got their maturities. So, there’s belief in insurance and actually people are becoming aware. Though we are at 5 percent, last year it grew by 21 percent in terms of premiums,” she added.

The chairman executive committee Uganda Insurers Association, Mr Latimer Mukasa, underscored the importance of agents to the industry.

“Agents play a significant role in ensuring our success as an industry and make up more than 60 percent of the insurance work force. They are a very viable and visible channel for promoting this industry,” he said.

Mr Mukasa further revealed that according to the 2022 Insurance Regulatory Authority of Uganda market report, general insurance grew by 22 percent from Shs736 billion to Shs898 billion while Life Insurance grew by 26 percent from Shs397 billion to Shs501 billion giving an overall estimated growth of 21 percent for the industry.

Whilst acknowledging the expansion of product lines specifically medical and motor, Mukasa noted that the association is committed to enhancing an enabling environment to further develop both the Life and Non- Life markets.

“As a secretariat we are also particularly focused on; enhancing our lobbying through government and parliament sector committees and creating multisector engagement platforms for life insurance providers so that we drive down costs for banks and other platforms in terms of premium deductions for our dedicated policy holders," Mr Mukasa said.

"We believe with initiatives like these and others, we should see our penetration grow to the desired 3 percent."