Poor awareness about the variety of insurance products and benefits available is hampering Uganda’s life insurance penetration, according to the region’s biggest players.
Speaking in Kampala, Prudential Uganda said that life insurance uptake is only steadily increasing despite drives to improve awareness being intensified, according to local reports.
Arjun Mallik chief executive Prudential Uganda, who spoke to local media about the company’s declaration of Ush1.5b in bonuses to their customers, said they have registered an average growth rate of 322% over the last two years since they bought out Goldstar Life Insurance.
“Our premiums have grown from Ush390m to the provisional figure of Ush7bn,” Mallik told East African Business Week.
Uganda’s insurance penetration – all the money spent on buying insurance remained at equivalent to less than 1% of the economy as majority of the population do not have insurance covers. At this level, Uganda is the lowest in the East African region. Kenya’s insurance penetration now stands at 3.4%, Tanzania, 2.3% in Tanzania, and Rwanda 1%. The average penetration for Africa is 6%, the report said.
Uganda’s insurance industry currently has 29 insurance companies; including 21 firms for non-life general insurance and 8 firms for life assurance business, and one re-insurer.
According to the Insurance Regulatory Authority 2017 half year provisional report, life insurance generated premiums worth Ush75bn in 2017, up from Ush60bn in the same period in 2016.