Uganda: Perceptions About Insurance Industry
According to Ugandan expert, unless insurance companies introduce products for low-income earners, who make up a big portion of the country, insurance will maintain the challenge of low penetration in Uganda.Despite the long existence of insurance in Uganda, the industry still has challenges with getting the public on board. Presently, insurance has only 0.73 per cent penetration in Uganda.
According to Mr Douglas Semakadde, the business development manager at Phoenix of Uganda Assurance Company Limited, their major customers are corporate organisations although, the Small and Medium Enterprise (SMEs) clients are more in number but mostly less valued in premiums. He said despite positive perception of clients on fold, lack of awareness especially among the uninsured public is still a challenge.
"With our customers, their perception is positive since they are already in the fold. With the ones approached, the struggle to get them informed still exists. But we are breaking barriers," he says.
According to Ms Cynthia Nakowa, a risk assessor at Equity bank and former employee at UAP insurance company, people have a perception that the insurance companies do not pay claims which guarantees lack of trust from the claimants hence averting progress.
She also reveals that people in Uganda see no reason to partake in insuring themselves or their properties because of the low disposable income.
"The public members I have interacted with are of the view that insurance companies do not pay claims. But I believe if people do not have enough disposable income, they will never think about getting an insurance policy," she says.
Reiterating Ms Nakowa's statements is Ms Ann Muhangi, the managing director at Wholesome consult, saying it is sad that Ugandans do not take insurance important yet for business, it is rather paramount for growth and sustainability... Read more Source: