Financial experts have lectured Ugandans on how to grow and protect their finances during a financial wellness class organized by UAP Old Mutual and PostBank.
The webinar which aimed at driving financial empowerment for Ugandans featured financial experts including Julius Kakeeto, the Managing Director/CEO, PostBank, Andrew Kabeera, the Executive Director, PostBank, Prof. Samuel Sejjaaka, acclaimed accounting and finance expert, Gloria Wakooba Tuhaise, Deputy Director, Procurement and Disposal Department at Bank of Uganda alongside Tonny Mudoola, the Ag. Managing Director, UAP Old Mutual Life Assurance and Jonan Kisakye, the Chief Executive Officer of Uganda Insurers Association (UIA).
These shared issues were aimed improving Ugandans’ ability to manage their money well, protection against risks and fraud, financial skills development, and change in mindset and attitude towards money generation and management.
Prof. Samuel noted that it is challenging that Ugandans were taught to be employed rather than to do things for themselves. He also says Ugandans have a mindset of making quick money yet the reality is that it takes a very long time.
“If you turn that to savings, you realize that not many of us think of saving until we are maybe about 40 or near retirement but in other cultures, people get a mortgage as soon as they get a job and it is very clear, should I pay rent or mortgage.”
“We also have very limited asset classes in which we are requesting ourselves. Most of us when we make money, think of brick and mortar that is it the best investment, maybe at the beginning you need to get some security but it is not the only asset class that we should be investing in. So, we seem to have a limited view of opportunities that are available. There are things like equities, treasury bills and other capital investments,” he noted.
Mr. Jonan noted that Uganda has a challenge when it comes to perception in terms of the insurance. He says that many Ugandans think that insurance is for high-income earners.
“I am sure that now insurers have now come up with policies that are now affordable up to even UGX50,000. We need to share information that insurance is for everyone because uncertainties and risks are faced by everyone.”
“There is also the issue of the relationship between the premium that I pay and at a point which I claim or at a point which I don’t claim, what happens to my premium, it’s a very big problem and the public must understand that as insurers we carry a risk with a price attached, that should a disaster strike, we will not come back and say please you paid us little premium, give us extra money,” he added.
Jonan says that despite the challenges the sector faces, insurance has improved to be resilient.
Ugandan enterprises urged to explore regional oil and gas opportunities“If you look at our three-quarter numbers, we have already written a trillion shillings premium. If you compare that with 2021 three-quarter, we had about shs800 billions, that alone is an improvement of about 21%.”
Tonny Muddola revealed that last year, insurance companies, especially life paid about shs560 billion in terms of claims, and about shs390 billion in revenue. “It simply means that we paid much more than what we actually got in terms of revenue.”
For UAP Old Mutual life, Mudoola says they paid out shs57 billion in claims and got shs54 billion in revenue.
He commended Post Bank Uganda for being the best to partner and standing at the center in terms of financial inclusion and transformation of livelihoods.
Kakeeto says they bank Saccos and groups because the Sacco transforms the lives of so many people that are not in direct contact with the bank.
He explained that generally in banking, rates are based on market rates since it is a factor of supply and demand.
“For Post Bank, most of our book is on a fixed rate not on a prime rate because we have a lot of people on a fixed income like salary earners, the low-income earners who cannot quickly respond to changes in market dynamics. So the moment you give them a variable rate they will be in trouble. For our customers, interest has gone up because the contracts we made that you will return this amount of money every month is fixed.”
Tuhaise Wakooba shared her personal experience on how insurance has greatly impacted her life and family. She urged everyone to take up insurance policies to avoid panic in times of uncertainty.
“Take up insurance and save for a purpose. For example, one of the most important things children need is to leave them with a good education and good foundation.”
