Uganda: Insurance Sector Posts 10 Percent Growth in Premiums to Ushs 1.76 Trillion

Kampala, Uganda — Uganda's insurance sector capped off 2024 with an impressive 10% growth in gross written premiums (GWP), rising from UShs 1.60 trillion in 2023 to UShs 1.76 trillion in 2024.

This strong performance, highlighted at the CEO Breakfast Presentation on June 12, in Kampala, was driven by heightened business activity, increased digital adoption, and the sector's growing importance in the country's economic framework.

Presenting the annual industry reflections and outlook for 2025, Insurance Regulatory Authority (IRA) CEO Ibrahim Kaddunabi Lubega acknowledged the sector's resilience in the face of macroeconomic volatility, climate risks, and evolving regulatory demands. He noted that insurance players embraced innovation, deepened customer-centric solutions, and made meaningful inroads toward inclusive financial services.

The non-life segment, which continues to dominate the market, recorded UShs 986.5 billion in GWP in 2024, marking a 5.83% increase from 2023. Life insurance, however, saw even faster growth, expanding by 14.74% to reach UShs 701.6 billion. Health Membership Organizations (HMOs) contributed UShs 69.8 billion, while microinsurance saw a staggering 131.42% surge to UShs 1.64 billion, indicating growing uptake among underserved and lower-income demographics.

The insurance industry's composition reflects an evolving landscape. Non-life insurance accounted for 55.95% of total premiums--slightly down from 58.14% the previous year--while life insurance grew its share to 39.79%. The remaining 3.96% was contributed by HMOs, up from 3.52% in 2023.

Claims surge

In terms of claims, the industry disbursed UShs 887.4 billion in 2024, a notable rise from UShs 727.55 billion the year before. This accounts for approximately 50.3% of total premiums, highlighting the sector's critical role in providing financial protection during crises. Policy uptake also expanded, with a total of 801,927 policies issued. Of these, 85.4% were individual policies, indicating rising interest and engagement at the grassroots level.

Market dynamics, however, remain concentrated. In the non-life segment, the top three companies held 41.1% of market share, and the top five controlled nearly 60%. The life insurance market displayed even greater concentration, with the top three players accounting for 60.5% and the top five commanding 84.4%. While these companies showcased strong underwriting profitability and cost discipline, the disparity in performance among smaller insurers highlighted a need for innovation and operational efficiency across the board...Read more on All Africa

Source: All Africa