Uganda Insurers Association to promote Islamic insurance
It has signed an agreement with AlHuda CIBE to ensure the success of takaful in the country.The Uganda Insurers Association (UIA) has signed a Memorandum of Understanding with AlHuda Centre of Islamic Banking and Economics (CIBE) to develop Islamic insurance - called takaful - in Uganda, Miriam Magala, the chief executive of the UIA, has announced.
She said the partnership will help promote insurance in the country, where "many people are still unaware about insurance in general and more so about takaful insurance".
"Takaful will allow for, among others, diversification in the products that the industry can provide to its ever changing and growing market and given that insurance penetration in Uganda is less than one per cent, we are confident that more and more Ugandans take up insurance with the introduction of takaful," she noted, quoted by The Monitor.
The partnership will extend to, among others, capacity building, product development, design and distribution, appropriate models for this market and advising on suitable regulatory frameworks.
The move comes after the government introduced amendments to the Financial Institutions Act and the Insurance Act to spur the growth of agency banking, bancassurance and Islamic finance
over the next few years.