The Insurance Regulatory Authority (IRA) has just released its Q3 2023 performance report for among others, insurance brokers, showing that Clarkson Insurance Brokers (U) Ltd is yet again ahead of traditional rivals.
Clarkson remained a leader, both in premiums collected as well as commissions earned in the 51-company brokerage industry.
Q3 2023 figures are a cumulative total of the business placed in the first 9 months of 2023.
According to the results, Clarkson, placed UGX83.3 billion, out of which UGX73.1 billion was realised, earning a cumulative total commission of UGX 11.3 billion, translating into 21.12% market share.
The Insurance Regulatory Authority (IRA) measures market-share leadership by the actual commissions received.
In second place is Minet Uganda, which placed UGX66.2 billion, out of which UGX62.3 billion was realised, earning UGX9.7 billion in commissions, translating into 18.11% market share. In the third position is Afrisafe Risk Consultants who placed UGX26.5 billion, realising UGX23.2 billion and a commission of UGX4.4 billion, equivalent to 8.18% market share.
ARIS Uganda (African Risk & Insurance Services Ltd ), in the fourth position, placed UGX36.1 billion and realised UGX32.2 billion and earned UGX 3.7 billion in commission⏤ 7% market share.
In the 5th place is Marsh Uganda which placed UGX24 billion and realised UGX24 billion, earning UGX3.3 billion in Commissions (6.26% market share).
The results also show a top-heavy industry in which the top 5 insurance brokers control 60.68% of all gross written premiums and 60.7% of sector commissions.
According to the results, insurance brokerage in the 9 months to September 2023, accounted for UGX403.9 billion, out of a total UGX1.229 trillion, equivalent to 32.9% market share.
Bancassurance accounted for UGX102.4 billion, an equivalent of 10.96%.
The Rise of Clarkson Insurance Brokers
Don’t let its English name confuse you⏤it is a Ugandan-majority-owned company.
The company has operated in East Africa since 1958 and came to Uganda in 1972 – but closed soon after, due to the political challenges at the time that virtually brought the economy to its knees. The company would later return to Uganda in 2004, offering insurance broking services for among others: medical insurance, general insurance, life and pensions as well as claims administration, risk management services, client training and reinsurance broking.
| Clarkson Insurance Brokers Performance (2010-2023) in UGX Billions | |||||
| Year | Premium Payable (Total Business Placed) – UGX | Premium paid (Premium Collected) – UGX | Gross Commission Recieved – UGX | Market Share (Premium Collected)- UGX | Market Share (CommissionRecieved) – UGX |
| 2010 | 0.4 | 0.4 | 0.1 | 0.5% | 0.5% |
| 2011 | 0.6 | 0.64 | 0.040 | 0.7% | 0.2% |
| 2012 | 1.9 | 1.1 | 0.2 | 1.4% | 1.1% |
| 2013 | 1.4 | ||||
| 2014 | 10.1 | 8.6 | 1.0 | 6.4% | 4.6% |
| 2015 | 12.9 | 7.7 | 1.9 | 4.2% | 4.9% |
| 2016 | 15.6 | 13.1 | 2.3 | 9.0% | 6.9% |
| 2017 | 19.9 | 15.2 | 2.8 | 8.7% | 6.8% |
| 2018 | 34.5 | 29.0 | 5.0 | 14.0% | 10.9% |
| 2019 | 46.6 | 40.6 | 7.0 | 15.1% | 16.1% |
| 2020 | 7.1 | 14.8% | |||
| 2021 | 52.8 | 47.7 | 7.6 | 12.7% | 13.2% |
| 2022 | 72.5 | 68.0 | 9.1 | 15.0% | 13.5% |
| 2023 (9 months) | 83.3 | 73.1 | 11.3 | 18.1% | 21.1% |
Although licensed in 2004, the actual business started in 2005. By the close of that year, out of the 22 players in the brokerage business at the time, Clarkson managed to register UGX216.6 million in premiums, earning a humble UGX11.2 million in commissions.
By 2011 Clarkson had worked itself to the 15th market position, with premiums of UGX636 million, barely 1% market share out of the now 30 players.
In 2011, Charles Muhoozi, a Ugandan professional, with over 30 years’ experience in Uganda’s Corporate Communications and Strategic Management was just retiring from Uganda National Social Security Fund (NSSF) where he last served as the Head of Marketing and Communications. Before that, he had had an illustrious career working for Uganda Breweries Ltd.
Under Mr. Muhoozi’s leadership, the company has grown its net premiums placed by more than 106 times, from UGX640 million in 2011 to UGX68 billion in 2022- a growth of 10525%. Gross Commissions received have grown 227 times from just UGX40 million to UGX9.1 billion in the same period.
This has catapulted the company from the 15th place (by market share) in a 30-company industry in 2011 to the top place in 2019, overtaking long-time industry leader, Minet (formerly AON Minet) with a 16.1% market share vs Minet’s 12%. Minet momentarily claimed its top place in 2020 with a slim 0.6% lead (15.4 % for Minet and 14.8% for Clarkson). In 2021 Minet was running neck to neck with Clarkson with a market share of 13.3% and 13.2% respectively. However, in 2022, Clarkson closed this gap with a 1% lead (13.5% vs Minet’s 12.5%), reclaiming the top spot.
If the Q3 2023 results are anything to go by, Clarkson is on course to remain the industry’s leading stock broker for the 2nd year running, and this time with a wider margin. For the 9 months to September 2023, Clarkson had a 21.3% market share, versus Minet’s 18.1%.
Muhoozi, in December 2022 eased out of the CEO role to become Executive Director. Alex Makata, an insurance professional with two decades of experience was appointed as CEO. He had prevously been serving as General Manager.
Clarkson is also present in Kenya, Tanzania and Zambia. It is a member of the Allied Africa Broker Network (AABN)- a group of reputable independent insurance brokers in several African countries. It also has a partnership with Price Forbes, a UK based reputable International broker with wide experience in various sectors including Oil and Gas, Aviation and specialized risks including Cybercrime etc. Price Forbes itself is part of the World Wide Broker Network.