By KT Reporter
The insurance industry wants insurance to be used as a tool to fight poverty amongst Ugandans, and not a luxury.
Despite various efforts by the industry leaders, the attitude amongst the wider public remains that insurance is for the rich, and this is part of the reasons penetration in Uganda has remained at a low 0.7-0.8 percent.
Industry penetration refers to the gross written premium (money paid by the public to insurance companies) compared to the value of the economy (GDP).
Joshua Akena, Head of Operations at Old Mutual Life Assurance, says that financial protection through insurance plays a critical role in reducing poverty, pointing out that insurance products are, contrary to common belief, highly affordable.
According to them, without insurance, one lives a life of uncertainty as they are never sure of what would happen in case of a major loss, either of life or property.
He was speaking at the Insurance Media Workshop 2025, organised by insurance companies under their umbrella organisation, the Uganda Insurers Association and other players in the industry.
Akena stressed that many myths about insurance were unfounded, citing the growing insurance claims that stood at about 800 Billion Shillings, or just under half of the total Gross Written Premium in 2024/2025.
He highlighted that insurance operates on the principle of good faith and stressed the importance of insuring life and property.
Jonan Kisakye, UIA CEO, while acknowledging the role of the media in pushing the insurance agenda, noted the importance of demystifying insurance and equipping journalists with accurate information to enhance reporting on the sector.
He stressed the need to expose insurers and the public to the full scope of insurance, describing the industry as a promise that can only be trusted if it is well understood.
Kaddunabbi Ibrahim Lubega, the Chief Executive Officer at the Insurance Regulatory Authority, explained that insurance was not a luxury but a necessity supporting economic resilience and individual stability.
According to Kaddunabbi, the industry’s penetration figure does not give the real picture of its importance to the economy.
“While Uganda’s insurance penetration stands at 0.8 percent, this figure alone does not reflect the industry’s full value. Look at the times insurance has restored lives with hospital visits covered, claims paid, and assets protected. That is the real impact,” he said.
With the growing use of digital tools, Kaddunabbi said more people should be able to access and use insurance services.
He cited the importance of micro insurance in protecting vulnerable groups like farmers and market vendors and encouraged the media to spotlight the positive outcomes of insurance, including claim payments, with about 50 percent of collected premiums-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
