Finance Minister calls for increased Ugandan insurance penetration

Oct 22, 2010

Syda Bbumba, Uganda's Finance Minister, has urged the country's insurance commission (UIC) to increase market penetration of insurance products in the country.

The UIC - which was established in 1996 - has recently been restructured and Ms Bbumba said the new board needs to do more to encourage insurance businesses to expand, New Vision Online reports. She remarked: "The services of insurance enhance business growth. This has to be seen in the number of policies underwritten and the size of premium collection."

And the minister also urged the body to make sure the industry settles claims in a "quick and equitable" manner. New Chairman of the UIC Elias Kasozi has requested the Ugandan Government makes the commission independent by doubling its annual fund, which currently stands at 400 million Kenyan shillings (€3.55 million).

The country was recently given a B rating by Fitch, a downgrade on the B+ it was handed in 2009.