Micro Insurance Gains Momentum Amidst Industry Growth – Kaddunabbi

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Micro Insurance Gains Momentum Amidst Industry Growth – Kaddunabbi
Alhajji Ibrahim Lubega Kaddunabbi

The insurance sector has steadily grown in recent years, with a wider range of insurers and products available, including life, health, property, and agricultural insurance.

The Ugandan insurance industry has seen robust growth, with total premiums rising from Shs828.9 billion in the first half of 2023 to Shs933.8 billion over the same period in 2024, marking an impressive 12.65% increase.

Ibrahim Lubega Kaddunabbi, chief executive of the Insurance Regulatory Authority, attributes this surge to heightened business activities, reflecting the sector’s resilience and its crucial role in Uganda's economic landscape.

The insurance sector has steadily grown in recent years, with a wider range of insurers and products available, including life, health, property, and agricultural insurance.

During the release of the sector’s half-year performance for 2024, Kaddunabbi highlighted the positive trajectory of the industry.

He noted that micro insurance, in particular, has generated significant funds, playing a critical role in providing financial security to the most vulnerable.

“Efficient insurance claims payment is crucial to ensure policyholders receive timely financial support when they need it most, fostering trust, satisfaction, and a reliable safety net against unexpected events,” Kaddunabbi said.

Looking forward, the regulator anticipates continued growth, driven by public sector investments in engineering and construction in the second half of 2024 and into 2025.

Innovations such as improved Marine Insurance compliance and increased public trust in the sector are expected to further boost the industry.

Despite the encouraging growth, insurance penetration in Uganda remains low compared to global standards. Public awareness and understanding of insurance products are still developing.

While the insurance industry is making progress, there remains significant potential for further expansion.

Increasing awareness, accessibility, and regulatory improvements could substantially boost its contribution to the national economy.

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