Uganda’s insurance Industry reports that in 2022 the various companies collected a total of 1.44 trillion Shillings in gross underwritten premiums, compared to 1.13 trillion Shillings recorded in 2021.
This, according to the industry is due mainly to increasing awareness by the public of the services, as well as the growth of the economy. The Insurance Regulatory Authority has over the years encouraged companies to increase the rate of speed at which they pay genuine claims as a way of attracting more clients.
Now, IRA Chief Executive, Ibrahim Kaddunabbi Lubega says it is time to improve the way they do things and embrace new innovations if the growth is to be sustained.
He noted that with innovation, companies can develop sustainable competitive advantage and better respond to external challenges, such as evolving consumer preferences, growing business complexity, shifting market dynamics, and ever-expanding technological advancements.
Kaddunabbi was speaking at the closure of the Insurance Week that started on Monday in Kampala, which was aimed at showcasing new products and ‘getting closer to the public’, according to IRA.
During the week, several activities were undertaken including awareness creation through different media platforms, a medical camp, and recognition of those who have had the best innovations over the year.
Saul Seremba, Principal and CEO at Insurance Training College said innovation is necessary for all sectors today especially as the needs and lifestyles of the public keep changing.
The IRA Board Chairperson Dr. Isaac Nkote Nabeta urged the government to consider waiving or revising some taxes to further promote innovation in the insurance industry.
He called for talks between the industry and the government to find a common position so as to make the growth of the industry faster and more sustainable.
Some of the taxes that were introduced in the recent Income Tax Amendments include the Withholding tax on the commission paid to agents, which they say has a direct impact on the cost of their operations. Nkote insists that when a sector incurs many taxes, growth is stifled and the government in turn has a smaller base to tax.
The Minister in charge of Kampala Capital City and Metropolitan Affairs, Minsa Kabanda said there is evidence that the mistrust by the public among the public towards insurance was the main impediment to the growth of the industry.
She says, therefore, that innovation by the industry should put in place mechanisms to ensure speedy claim-processing methods because the regulations in place have focused on responding to this concern.
She called on government agencies and the insurance player to further integrate the industry into the savings platforms of the country so that the premiums can be used for the development of the economy and communities.
Prudential Insurance won the “People’s Award’ having been voted for by most people, while Turaco has the ‘most innovative insure-tech’ for its digital-based insurance services.
Diamond Trust Bank was awarded ‘Most Innovative Bancassurance Agent’, while Ayo Senkyu Plan, an online micro-insurance platform, was named Best Insurance Broker.
Liberty Life was awarded Most Innovative Life Insurer for its online portal for membership reimbursements, while a similar award in Non-Life also went to Liberty General Insurance.
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