By Naome Namusoke/ KMA Updates
KAMPALA – Insurance penetration in Uganda remains critically low, currently standing at less than 1%, according to industry statistics. Experts attribute this to limited public awareness, misconceptions about insurance, and mistrust within communities—factors that have left the sector lagging behind despite its potential to support socio-economic development.
To address this long-standing challenge, the Insurance Brokers Association of Uganda (IBAU) has today introduced the Insurance Kimeeza, a strategic dialogue platform aimed at bringing together key players in the insurance sector to identify and address pressing issues affecting uptake and growth.
Speaking during the event at hotel Africana in Kampala , Paul Muhame, Chairman of IBAU, noted that the Kimeeza seeks to create space for open discussions around critical concerns in the insurance industry such as delayed premium payments, fraudulent claims, and the lack of effective data-sharing systems among sector players.
“This Kimeeza is designed to serve as a platform to address challenges in the industry and find solutions collaboratively. We are especially keen on improving how data is shared across the sector to enable better decision-making and fraud prevention,” said Muhame.
Also speaking at the event, Gary Corbit, Chief Executive Officer of Sanlam Life Insurance, stressed the importance of product innovation as a key driver in improving market penetration.
“For insurance to thrive in Uganda, we must innovate beyond traditional models. Sector players should develop new products that respond to the unique needs of the Ugandan population,” Corbit emphasized.
While Uganda’s insurance industry contributes approximately 33.1% to the country’s Gross Domestic Product (GDP), according to the 2023 industry report, stakeholders agree that this figure does not reflect the sector’s true potential. The gap presents an opportunity for growth, particularly through awareness creation and product diversification.
In response, various insurance companies used the forum to showcase new product innovations targeting under-served market segments. These include micro-insurance packages for low-income earners, digital insurance solutions, and flexible premium payment models.
The Insurance Kimeeza is expected to become a regular convening space to engage with industry trends, regulatory gaps, and consumer needs—positioning insurance as a key driver of financial inclusion and economic resilience in Uganda.
Background:
Uganda’s insurance penetration rate has stagnated at under 1% for years, well below the average of 3% across Sub-Saharan Africa. The Insurance Regulatory Authority (IRA) has frequently pointed to low public awareness, limited distribution channels, and trust deficits as barriers to uptake. Platforms like the Kimeeza are now seen as vital steps toward bridging the communication and innovation gap within the industry.