As Uganda’s insurance industry heads into 2026, it finds itself at a crossroads. Premiums are rising, claims are being paid at record levels, new players are entering the market, and digital products are reshaping distribution. Yet insurance penetration remains below one per cent, exposing structural weaknesses in an industry facing bigger risks and tougher regulatory demands.
In this sit-down interview with CEO East Africa’s Paul Murungi, the Chief Executive Officer of the Insurance Regulatory Authority (IRA), Alhaj Dr. Kaddunabbi Ibrahim Lubega, explains why consolidation is no longer optional, what is driving growth in microinsurance and agricultural cover, how the industry is preparing for oil, gas, and infrastructure risks, and what insurers must change now—or risk being left behind—as the sector moves toward 2030.
As we move into 2026, can you give a clear snapshot of Uganda’s insurance sector so far? What key trends, growth drivers, challenges, and market shifts stood out in 2025?
The insurance industry posted positive growth trends last year, driven by increased public awareness and public trust, arising from prompt claims payment and complaints handling.
The industry underwrote Ugx.1.57 trillion in Gross Premiums in the first three quarters of 2025, and of that, Ugx. 721.96b was paid in claims. This highlights the substantial financial impact of claims on the industry and reflects the growing benefits being delivered to policyholders.
The growth in microinsurance business in the informal sector is a significant trend and a key uptake driver. For example, in the first half of 2025, it reached UGX 2.1 billion, which was more than triple the UGX 61 million registered in the second half of 2024.
We project that this segment will continue growing owing to the fact that its products are affordable to most Ugandans, including low-income earners who need protection most.
The increased uptake of Agriculture insurance at both commercial and subsistence level, with a total of 106,374 farmers insured across the country, has also been a key trend in the sector.
The industry witnessed consolidations during the year. For instance, Jubilee Allianz General Insurance Company Limited merged with Sanlam General Insurance to form one company, Jubilee Health Insurance Company of Uganda Limited amalgamated into Jubilee Life Insurance Company of Uganda Limited to form one company,
while Marsh Insurance Brokers Uganda Limited amalgamated with OLEA Uganda Insurance Brokers Limited.
Mergers are a positive trend in the industry because they create strong companies which are able to underwrite bigger risks.
The industry also witnessed the entrance of two new companies – Tamini General Insurance Uganda Limited, the first company that is offering insurance based on sharia principles (Takaful) and AAR Health Services, which changed the line of business from a Health Membership Organisation (HMO) to general insurance. It now operates as AAR General Insurance Uganda Limited.
Additionally, we had UGAFODE Microfinance Limited enter the bancassurance space. All these are positive trends for the industry.
The industry has registered several product innovations as companies adapt to the constantly changing customer needs. Many have adopted digital platforms, such as online transactions, to make insurance services more accessible and user-friendly. The integration of technology to meet the increasing demand for efficient, seamless transactions has helped attract a wider range of clients.
Lastly, the industry saw the introduction of digital Motor Third Party stickers. This initiative seeks to streamline the MTP insurance process, strengthen the security of the stickers by reducing the risk of counterfeits and fraud in the system and improve efficiency by eliminating manual processes and enabling faster, more reliable verification.
Gross Written Premiums hit UGX 1.77 trillion in 2024, according to the IRA annual report, yet insurance penetration is still below 1%. How do you explain strong industry growth without a matching rise in national uptake?
While Gross Written Premiums (GWP) rose to UGX 1.77 trillion in 2024, insurance penetration remains low largely due to the rebasing of Uganda’s GDP, which incorporated fast‑growing sectors such as oil, gas, and gold mining. This rebasing increased the size of the overall economy, making insurance’s relative share appear smaller even as the industry itself expands.
It is important to note that uptake is steadily improving. For example, the number of insured individuals grew from 405,837 in the second quarter of 2024 to 506,119 in the same period of 2025. This demonstrates that more Ugandans are embracing insurance, even if the penetration rate looks modest when compared to the rebased GDP.
In short, the industry is experiencing strong growth in absolute terms, but because other sectors are expanding at an even faster pace, insurance’s contribution to GDP seems limited. Our focus remains on sustaining this momentum and implementing measures to raise penetration to at least 2% by 2030.
The industry paid UGX 887.5 billion in claims in 2024, with 2025 showing even greater promise. Does this signal rising consumer trust and utilisation, or does it point to underwriting weaknesses, fraud risk, and cost pressures that could threaten long-term sustainability?
The UGX 887.5 billion paid out in claims during 2024 reflects both the growing utilisation of insurance services and the industry’s commitment to honouring obligations.
Rising claims volumes are often a positive indicator of consumer trust, as policyholders increasingly recognize insurance as a reliable safety net.
At the same time, such figures naturally raise questions about underwriting discipline, fraud risk, and cost pressures. The industry is actively strengthening risk management frameworks, enhancing fraud detection mechanisms, and improving product design to ensure sustainability.
It is important to emphasize that growth in claims does not necessarily signal weakness; rather, it highlights the maturing of the market. As more people take up insurance, claims will rise correspondingly.
The challenge and opportunity for the industry is to balance this growth with prudent underwriting and innovation, ensuring that consumer confidence continues to build while long-term sustainability is safeguarded.
You’ve repeatedly encouraged mergers and acquisitions. Why is consolidation now essential rather than optional? What patterns – capital erosion, weak governance, recurring losses – have convinced you that Does Uganda has too many insurers for its penetration level and economic size?
Consolidation is no longer a matter of choice but of necessity for the sustainability of Uganda’s insurance sector. While the industry has registered growth in Gross Written Premiums, the market remains fragmented, with too many players competing for a relatively small pool of policyholders.
We have observed recurring patterns that reinforce the case for mergers and acquisitions. It is actually not a matter of companies incurring losses or facing governance challenges; but rather, it is about building stronger institutions capable of underwriting larger and more complex risks.
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The risk landscape is shifting to climate change risks, cyber security risks, and the rapid adoption of technology is introducing new and evolving exposures.
So to address these demands, a well-capitalised and resilient company that absorbs shocks is what we would like to see in the market. We want to see companies that can provide adequate compensation to affected policyholders, and maintain financial stability without compromise.
In addition, when companies merge, they build a stronger and more resilient industry that can support sustainable growth and protect the economy.
Ultimately, there shall be improved efficiency in service delivery, and accelerated penetration beyond the current 1% shall be realised.
For insurers that exited or were delicensed, such as Rio, what were the core failures behind their collapse? Was it scale, solvency, governance, or inability to adapt to rising compliance and operating costs under stricter regulation?
We operate within a liberal economy that allows free entry and exit. When company directors choose to exit the market, our responsibility as the Regulator is to ensure that all existing obligations to policyholders are fully honoured before the exit is finalised.
In all circumstances, we have managed the process effectively, and to date, no company has left the market without settling its commitments or absconded with policyholders’ funds.
What is the biggest brake on Uganda’s insurance penetration today? Is it mistrust, affordability, weak distribution, product relevance, or the industry’s struggle to show value at the household level?
The biggest obstacle is the low awareness levels about insurance services, but this is being addressed with the multiple partnerships the Authority has established with other financial sector players to enhance financial literacy and awareness. Our goal is to empower the population to not only embrace insurance as a risk mitigation measure but also enable them to make informed decisions when securing insurance services in general.
The affordability challenge has been addressed through licensing micro insurance service players who are innovating low micro insurance products that are not only affordable to even people at the bottom of the pyramid but also speak to their needs.
With oil and gas, major infrastructure projects, and expanding digital transactions, how ready are Ugandan insurers to underwrite large, complex, high-risk portfolios? Does IRA anticipate raising capital requirements to match these emerging realities?
The industry is ready to underwrite oil and gas risks. We don’t anticipate raising capital requirements to match these emerging realities, and that’s why the insurance industry players, with our guidance, formed Insurance Consortium for Oil and Gas Uganda (ICOGU), a co-insurance group, consisting of licensed local insurance companies, to undertake local insurance for the oil and gas sector in Uganda.
This consortium is to enable and foster consolidation of the financial and technical capacity required of insurance companies participating in the underwriting of oil and gas risks.
To date, data from the Uganda Insurers Association, which hosts ICOGU, show that about UGX 200 billion in premiums have been generated since its inception in 2016, demonstrating its ability to mobilise resources and provide financial security for large-scale energy projects.
The oil and gas industry is highly risky, involves massive investments, operational hazards, and environmental concerns. The therefore is playing a key role in addressing emanating challenges through comprehensive insurance solutions.
Over the years, we have encouraged industry capacity building, and the players are continuously developing a skill set to be able to accurately assess and quantify risks in the oil and gas sector.
Looking toward 2030, what does success for Uganda’s insurance sector look like? Higher penetration, stronger regional champions, deeper digitalisation, or a more resilient industry under modern regulation?
The industry recently launched the Insurance Literacy and Market Development Agenda (ILMDA), which seeks to bridge the knowledge gap, build trust, and empower Ugandans with the information they need to make informed financial decisions.
Through this agenda, we intend to demystify insurance, improve trust and attitudes, expand insurance access and uptake and encourage innovation and product relevance.
With this, we expect increased penetration and inclusion through expanded coverage, especially in rural areas and the informal economy, and continued growth in microinsurance with innovative, affordable products.
Additionally, we expect enhanced trust and literacy that will result in a shift from mistrust to confidence, supported by transparent practices and strong consumer protection, demystified insurance and higher quality management, given that IRA is now ISO certified.
Finally, what must insurers change now to survive and thrive in that future, especially given your view that companies that stop changing risk being changed by the environment?
To survive and thrive, insurers must enhance digitalisation to increase efficiency, drive online customer engagement, and streamline operations.
Innovation will continue being paramount, especially when it comes to innovating inclusive and affordable products that demonstrate clear value.
Innovation will continue to play a critical role in Uganda’s insurance industry; it is through innovation that the industry is able to drive growth and sustainability, increase penetration, and above all enhance operational efficiency
Incorporating Environmental, Social, and Governance (ESG) in operations will be key for any players that want to thrive because it allows for better risk management, performance, and stakeholder confidence.
