KAMPALA, UGANDA – Uganda’s insurance industry paid out over UGX 800 billion in claims in the past year, according to figures released by the Insurance Regulatory Authority of Uganda (IRA). The payout represents 50% of the total premiums collected by the sector.
Dr. Ibrahim Kaddunabi Lubega, CEO of the IRA, said the significant figure proves the industry is fulfilling its core purpose.
“The ultimate goal of why people insure is in the unfortunate event that they suffer a loss, they will be paid,” Dr. Kaddunabi said. “I’m happy to say that if UGX 800 billion was paid back in the form of claims, it means the reason why people insure is being achieved.”
Despite these substantial payouts, the country’s insurance penetration rate remains below 1%. This low uptake is attributed to various factors, including public mistrust, low public awareness about insurance, and a narrow range of products.
Speaking at a workshop, Dr. Kaddunabi encouraged more Ugandans to take up insurance, noting that the regulator is in place to ensure claims are paid. “If you do not have an insurance policy now, you only blame yourself because the insurance regulator is there to ensure that if you have insurance and there is any problem, you will be paid. You will be compensated,” he added.
The remarks were made at a high-level workshop titled “Bridging the Gap: Rethinking Insurance Reporting in Uganda,” hosted by the Uganda Insurers Association (UIA) at Fairway Hotel in Kampala. The event was designed to help reporters better understand complex insurance concepts.
Ruth Namuli, Chairperson of the UIA and CEO of Sanlam General Insurance, described the event as the start of a “continuous engagement” with the media. She said the goal is to work together to simplify insurance information for the public, which will help build trust and increase market penetration.
“We can’t do it without our media friends,” Namuli said.
