HOW WE MADE IT: ICEA Life Chairman, James Ndegwa tells how Uganda’s leading insurance and asset management business was built On 11th March 2020, the ICEA Uganda celebrated 20 years since it opened its doors for business in 2000. In his speech, James Ndegwa, shares the 6 secrets behind the conglomerate’s growth into a UGX155 bn insurance and financial services business.

In 1974 these overseas companies sold their stake in the company to some East African citizens.

The local incorporation of an insurance company back in the early 1960s was a novel concept and at the time most players in the industry were branches or agents of foreign-based insurers. With time we were joined by state-owned players and eventually, legislation obliged other players to invest capital and incorporate locally.

The Insurance Company of East Africa Limited’s credentials as a pioneering, patriotic and indigenous business, operating and innovating well ahead of regulatory and industry requirements, were therefore established at the outset and these characteristics hold true and remain integral to our DNA and culture to date.

In the days of the original East Africa community, goods and services traded freely across our artificial borders, as with the unrestricted movement of people, for Insurance Company of East Africa this open market meant that the company could write business across the region through a network of agents and branches. However, with time, various restrictions arose, including nationalisation of the industry in a neighbouring country and eventually, the business became confined to Kenya.

Our journey back to Uganda started on 5^th August 1999 with the incorporation of the Insurance Company of East Africa (Uganda) Limited. The company opened its doors for business in 2000, in the premises we still occupy today, with a paid-up share capital of UGX 2 billion, making it one of the most highly capitalised companies in the market at that time.

It is this anniversary that we celebrate today.

Allow me to share six points that have arisen in the twenty years that followed the company’s opening for business:

1. It has developed into a Group spawning three businesses each rebranded ‘ICEA’ from the original ‘Insurance Company of East Africa’ namely:

• ICEA Life Assurance Company Limited – with total assets standing at UGX 110 bn as of December 31, 2019;
• ICEA General Insurance Company Limited – whose total assets stood at UGX 45 bn by the close of 2019;
• ICEA Asset Management Limited – which has assets under management as at year-end 2019 of UGX 155.51 bn.

The two insurance companies ICEA Life and ICEA General are ranked 3rd and 6th in the market with (if the regulator will allow – in an era of demerger) a combined Gross Written Premium of UGX 64 bn in 2019.

One of the key values espoused at the ICEA Group is that we deliver on our promise and in that regard I can report that in 2019 ICEA Life and ICEA General paid claims and maturities amounting to UGX 27 bn.

2. Of course this business all comes from those who entrust us with their insurance protection and investment needs. Another value and principle at ICEA is to see through the eyes of the customer and speaking of customers:

• ICEA Life has over 35,000 individual customers and 120 corporate customers covering another 58,700 lives;
• ICEA General has 20,000 individual customers and over 5,000 corporate customers;
• ICEA Asset Management has a number of corporate customers and over 1,400 individual clients.

  

3. The ICEA Group sets a lot of store in providing innovative solutions to our valued customers and over the last 20 years we have unveiled quite a number of special products including:

• The ICEA Unit Trusts which were launched in 2014 and are returning very competitive returns to over 1,400 clients;
• The Toto Education Plan launched with much success in 2018;
• In 2019 ICEA Life pioneered annuities with the ICEA Annuity Plan for retirees;
• And on the non-life side, ICEA General launched the Simba Motor Product in 2018.

Talking of innovation, I must acknowledge that the insurance industry has generally been characterised by slow innovation and advancements in technology. In our quest to become an insight-driven organisation, we have set up an innovation centre that will drive ICEA into the digital age.

We have invested in systems, advanced training for staff and partnerships with the Insurance Training College of Uganda to distribute microinsurance products via digital platforms. The future is digital and our ambition is to be at the forefront of the industry’s move in that direction.

4. Another value of the ICEA Group is that our people are important to us:

• From a team of about 10, back in 2000, we have grown our staff count to over 100 employees;
• 30 trainees have been through our Graduate Apprentice Program and are now gainfully employed;
• Of course, there are more (than we would care to remember) ‘graduates’ who learned their trade at ICEA and are now serving as executives across our industry. Training professional staff is an expensive and time-consuming exercise but is one we remain committed to;
• ICEA General has over 40 active agents in addition to its relationships with the registered intermediaries;
• ICEA Life has more than 500 active agents;

5. Besides the original Head Offices at Rwenzori Courts which we still occupy today, in terms of premises over the 20 years:

• We have opened branch offices in Mbarara, Kabale, Gulu, Arua, and Mbale;
• Back in Kampala we also have created three fully-fledged ‘Centres of Excellence’ at Prime Plaza, Rumee Towers and Arrow Centre for our agency force to operate from;
• We also have established 11 active Bancassurance partners.

  

6. Now the success of ICEA in the market has been underscored by the values that define us as a business. Our ability to see through the eyes of the customer, to recognise that our people are important to us and that we deliver on our promise, all rests on the core value that we champion integrity.

That integrity is critical in a business of any nature but especially one in financial services is a fact that cannot be overemphasized. This has been the secret of our success and the culture that defines us. In truth, perhaps it is also a reason why we might have grown somewhat slowly but at the same time steadily, and it is certainly why we are able to stand here today celebrating success after 20 years – with many more to go.

The support of our regulators over these years has been important and integral to our success:

I thank the Insurance Regulatory Authority of Uganda for continuing to provide guidance and steering the industry forward. The success story of the initiatives such as Cash & Carry from Uganda are a lesson markets like Kenya are keen to learn from and adopt.

I recognise the role of the Uganda Retirement Benefits Regulatory Authority in nurturing a young retirement sector and I assure you that ICEA Life and ICEA Asset Management are keen to continue working with you to grow the sector sustainably.

The Capital Markets Authority, as another of our regulators, has been keen in developing and widening the capital markets in the country. I thank you for pushing forward the collective investment schemes that will build a sustainable local base of savings to be utilised in the capital markets and overall development of Uganda.

I would like to recognize and thank my fellow directors for their exceptional stewardship of the companies over the years. The Management team, staff and agency force have continued to do a commendable job with commitment and great enthusiasm – I thank you all.

Our other partners, including brokers and agents, our reinsurers, and all our service providers, have played their role in our successes over the last 20 years. We are grateful for their support.

To our customers present here today, we are most grateful to you for entrusting us with your hopes and dreams, with your future and businesses. We do not take your support and confidence for granted and are committed to remain worthy of the same. We shall continue rolling out initiatives to ensure we keep you at the centre of our business –  as you are the reason we exist.

ICEA – We are BETTER TOGETHER.