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Insurance Industry in Uganda Calls for Government Support to Boost Growth.
By Naomi Namusoke/KMA Updates
The insurance industry in Uganda has made a passionate appeal to the government, requesting financial support of over UGX 10 billion from the national budget. The sector leaders argue that this funding is crucial to accelerate growth, improve service delivery, and expand coverage, especially within the agricultural sector.
The appeal was made during the 5th Insurance Innovation Awards, an event that showcased the remarkable progress the industry has achieved over the years.
Alhaji Kaddunabbi Lubega
While speaking at the awards ceremony, Al Hajji Kaddunabi Lubega, the CEO of the Insurance Regulatory Authority (IRA), acknowledged the growing participation in the sector and the positive impact of innovations introduced in recent years. He emphasized that these innovations are essential for enhancing service delivery and fostering industry growth.
“The increased participation over the years is encouraging, and these innovations are aimed at improving service delivery for the sector.”
— Al Hajji Kaddunabi Lubega, CEO IRA
Strengthening Agriculture Through Insurance
Adding to the discussion, Isaac Nabeta, the Chairperson of IRA, stressed the need for financial support to specifically target the agricultural sector. He pointed out that the sector requires at least UGX 10 billion to create insurance products that can protect farmers and agribusinesses from risks, thereby enhancing agricultural productivity and stability.
“The insurance industry requires UGX 10 billion to support the agricultural sector and safeguard the livelihoods of farmers across the country.”
Isaac Nabeta , Chairperson IRA
The Minister of Finance, Planning, and Economic Development, Hon. Matia Kasaija, praised the impressive growth of the insurance sector, highlighting its expansion from UGX 200 billion to UGX 1.8 trillion by the end of 2024. He noted that the sector employs over 10,000 youth and contributes UGX 200 billion annually in taxes.
Despite these achievements, Hon. Kasaija emphasized that the government and stakeholders must do more to ensure that Ugandans continue to embrace insurance. He urged the public to stop treating insurance casually and to recognize its critical role in economic stability.
“Uganda should stop treating insurance casually but rather continue with innovations that will make it more attractive and beneficial to the people.”
— Hon. Matia Kasaija, Minister of Finance, Planning, and Economic Development
Echoing the sentiments of support, the Minister for Trade, Industry, and Cooperatives, Hon. Francis Mwebesa, affirmed the government’s commitment to prioritizing insurance. He revealed that the government allocates over UGX 5 billion annually to the sector as part of the national budget.
“We must put insurance at the forefront to ensure that it plays a pivotal role in safeguarding investments and promoting economic resilience.”
— Hon. Francis Mwebesa, Minister for Trade, Industry, and Cooperatives
As the insurance sector continues to expand and innovate, leaders within the industry are advocating for targeted financial support to drive growth and safeguard Uganda’s key economic sectors. By investing in the insurance industry, the government can ensure that more Ugandans benefit from risk protection, particularly in agriculture, which remains the backbone of the economy.