Insurance industry leaders have been urged to embrace innovation, technology and data-driven decision-making if they are to remain relevant and profitable in an increasingly unpredictable world.
The call was made during the 68th Insurance CEOs Breakfast Meeting organised by the Insurance Regulatory Authority (IRA) at Kampala Serena Hotel, where industry leaders gathered to discuss how to expand insurance business in times of upheaval.
Speaking giving a keynote address, former NSSF board chairperson, Peter Kimbowa warned that while many insurance companies may still prosper using old systems, surviving the future will require a completely different mindset.
“It is very possible and very easy for an insurance company to prosper using old models, but it becomes extremely difficult for an insurance company to survive the future,” Kimbowa said.
He noted that leadership in the insurance sector must shift from merely managing present challenges to preparing organisations for future realities shaped by technology, artificial intelligence and digital transformation.
“The future we are looking at today is the future of technology, AI and digital transformation,” he said.
Kimbowa also identified human capital as critical to the future of the sector, urging companies to invest in talent equipped with skills that match evolving customer preferences and market demands.
He called for continuous innovation, noting that insurers must quickly identify signals of change and adapt before they are overtaken by disruptions.
“We live in a world of hyper growth, rapid growth and disruptive growth, so we need innovation, we need new ideas and testing them throughout,” he said.
According to Kimbowa, partnerships and collaboration within and outside the insurance ecosystem will also play a key role in helping companies remain competitive.
He challenged insurers to expand their use of data beyond conventional records, arguing that behavioural and emerging risk data would become increasingly important in underwriting and claims management.
“We need data beyond the data we have,” he said, citing recent concerns around access to reliable information during health emergencies such as Ebola outbreaks.
IRA Chief Executive Officer Al Haji Ibrahim Lubega Kaddunabbi said the discussions were timely, especially as businesses globally continue to face unprecedented disruptions.
“This is part of the message anybody preparing for times of disruptions should hear. They must think outside the box and challenge the status quo,” Kaddunabbi said.
He praised Kimbowa for sharing insights that he believes industry CEOs are ready to implement in order to improve performance and resilience.
Kaddunabbi also urged insurance companies to align themselves with Uganda’s economic transformation agenda under the National Development Plan IV (NDP IV), particularly by focusing on the government’s ATMS strategy sectors.
“Everybody has to focus on the ATMS because they are the areas where government and stakeholders are going to put emphasis in order to steer the tenfold growth strategy,” he said.
He stressed that the insurance sector must position itself at the centre of these economic activities instead of operating from the sidelines.
The IRA boss further emphasised that insurance, as a risk management tool, must become more forward-looking by developing products and systems capable of responding to future and unseen risks.
“We must not only be operating from what happens now. We must operate in a futuristic way based on what we envisage is going to happen in the future,” he said.
