Prudential Uganda completes takeover of IAA insurance business, customers

Prudential Assurance Uganda Limited has announced the complete takeover of all the medical insurance policies and clients of International Air Ambulance (IAA).

The development was announced  during a virtual press conference held on Wednesday morning in Kampala.

“This is a momentous partnership between Prudential and IAA. Today we mark an important of the completion of the transfer of IAA policyholders to Prudential,” said Arjun Malik, the Prudential Chief Executive Officer.

He explained that the transfer was done smoothly but also with the interest of clients from both companies in mind.

“We want to assure our new family members who used to be part of IAA  that we will handle and execute your cover to the same standard as we do to existing customers. Feel free to engage and reach out to us. We will continue to extend to you utmost service,” Malik said.

“Our health business journey of walking hand in hand with the new family of IAA starts today. It is an opportunity to extend affordable health care to more customers. To the clients of IAA, the service you have been receiving is uninterrupted but even made better.”

The Prudential Uganda CEO insisted that all valid claims from IAA customers will be honored well in accordance with the regulations to ensure their interests are catered for.

“As a result of this transfer, at least 50,000 new members have joined the prudential family. Our purpose is to ensure people make the best out of life and all the new members who have joined are welcome. They will receive the highest standard of care,” Malik said.

IAA was by December 2020 the largest Health Membership Organization in Uganda with a portfolio of shs31.7billion.

However, it had been reported that the move will see IAA which part of the bigger International Medical Group(IMG) taken over wholly by Prudential Uganda.

However, IAA officials on Wednesday said Prudential was only taking over their insurance business.

“We wanted an organization with international presence and values. Today, I want to announce Prudential was the most suitable.We had to find a suitable partner to take over our health issuance partners and therefore, Prudential was deemed as the preferred partner to take over IAA’s insurance business. We are stepping into the area of telemedicine which will allow our clients get medical advice from their homes,” Sukhmeet Sandhu, the CEO of International Medical Group.

He noted that whereas health insurance was a viable business, IAA decided to have a niche in health care.

“It was a financially viable business for us but we didn’t want to lose focus in being involved in many businesses. Our priority now is to focus on health care.”

Benerd Obel, the Director in charge of Supervision at the Insurance Regulatory Authority described the deal as a big milestone to the country’s insurance industry.

“Both companies have each enjoyed a good market share and leadership in various portfolios and a move of this magnitude tells of Prudential’s efforts to remain as top insurance performer. It is a good practice for businesses to come together to forge synergies,”Obel said.

“I am happy to note that the insurance sector in Uganda is growing and we pledge to continue providing unwavering support to the industry and increase awareness for need for insurance among the population.”