Uganda’s insurance industry has surpassed the two trillion-shilling mark in gross written premiums (GWP) for the first time, collecting 2.024 trillion shillings from policyholders in 2025. According to the Insurance Regulatory Authority (IRA), this represents a record growth of 14.72 percent from the 1.764 trillion Shillings recorded in 2024. The regulator attributes the milestone to sustained public sensitisation campaigns and product innovation that have expanded insurance uptake across the country.
The 2025 industry performance report also shows that insurers paid out nearly one trillion shillings in claims, a development the regulator believes will further boost public confidence in insurance. IRA says the industry remained financially strong and resilient throughout the year, with total assets rising to 3.459 trillion shillings. Insurers also maintained capital adequacy ratios well above the regulatory minimum requirements.
One of the standout performers was the life insurance segment, which expanded by 39.2 percent, increasing its share of total industry premiums to 48.3 percent, nearly matching the non-life segment, which accounted for 49.49 percent.
Dr Protazio Sande, the Acting Chief Executive Officer of IRA, says the strong growth reflects increasing public appreciation of insurance as a tool for long-term financial security, wealth creation, retirement planning and family protection.
At the segment level, non-life insurance generated 1.054 trillion shillings in gross written premiums, up from 986.5 billion Shillings in 2024, representing a growth of 1.53 percent. Life insurance registered much stronger growth, with premiums rising from 702.25 billion Shillings in 2024 to 977.6 billion Shillings in 2025, an increase of 39.21 percent.
Health Membership Organisations (HMOs), which provide facility-based medical insurance, recorded a decline in premiums from 69.9 billion Shillings in 2024 to 30 billion shillings in 2025. IRA attributes the decline to the transition of AAR into a non-life insurance company, noting that the premiums remain within the industry under the non-life segment.
Microinsurance also posted remarkable growth, with premiums increasing from 1.64 billion shillings in 2024 to 7.33 billion shillings in 2025, representing a 347.86 percent increase. Dr. Sande says the growth was driven by increased uptake rather than higher premium prices.
The industry’s solvency position also remained strong, with weighted average Capital Adequacy Ratios of 250 percent for life insurers and 266 percent for non-life insurers, well above the regulatory minimum of 200 percent. According to IRA, this demonstrates that insurers are adequately capitalised to meet policyholder obligations and withstand economic or market shocks.
Looking ahead, the regulator expects continued economic growth, investments in the oil and gas sector, and ongoing infrastructure development to further drive demand for insurance. IRA is also continuing to lobby government to insure public assets, arguing that doing so would not only protect public investments but also significantly expand the insurance market, given that government is the country’s largest asset owner.
Ethel Mulondo, IRA’s Manager for Regulations, Drafting and Compliance, says discussions with government are progressing and that implementation will be phased, beginning with government motor vehicles.
Dr Sande adds that even before the proposed framework is approved, government has already begun insuring some infrastructure projects. IRA also remains optimistic that the National Health Insurance Scheme (NHIS) will finally be approved next year.
Parliament passed the National Health Insurance Scheme Bill in March 2021, but President Yoweri Museveni declined to assent to it, citing concerns raised by employers, labour unions and civil society over the financial burden on the private sector and the lack of a clear subsidy mechanism for vulnerable Ugandans.
The Ministry of Health is currently reviewing a revised framework to align the scheme with Uganda’s Universal Health Coverage goals. Musa Sebuufu, IRA’s Manager for Risk and Actuarial Services, says the authority has worked with the Ministry of Health to address the President’s concerns and that the process has now been completed-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
