Uganda’s Insurance Sector Grows 10% in 2024, Eyes Greater Innovation and Inclusion in 2025

Uganda’s insurance industry registered a solid 10% growth in gross written premiums (GWP) in 2024, rising from UGX 1.60 trillion in 2023 to UGX 1.76 trillion—underscoring the sector’s resilience, adaptability, and emerging role in Uganda’s economic recovery. This performance was revealed at the CEO Breakfast held on June 12, 2025, in Kampala, where Alhaj Kaddunabi Ibrahim Lubega, CEO of the Insurance Regulatory Authority of Uganda (IRA), delivered a detailed sector performance report and strategic outlook for 2025.

The report captures a picture of a steadily maturing sector that is embracing digitalization, expanding distribution channels, and positioning itself to serve a broader base through microinsurance and emerging Islamic insurance products.

A Year of Robust Growth Across All Lines

According to Kaddunabi, both life and non-life insurance lines showed healthy growth in 2024 despite macroeconomic pressures, evolving regulatory requirements, and climate-related risk exposures.

• Non-life insurance generated UGX 986.5 billion in premiums, up from UGX 932.1 billion in 2023—a 5.83% increase.
• Life insurance surged by 14.74%, growing from UGX 611.5 billion in 2023 to UGX 701.6 billion.
• Health Membership Organizations (HMOs) reported a 23.76% jump in premiums, reaching UGX 69.8 billion.
• Microinsurance, while still small in absolute terms, posted the most dramatic rise—131.42%—growing from UGX 708 million in 2023 to UGX 1.64 billion.

These figures reflect what Kaddunabi described as “heightened business activity and a deepening role of insurance in providing a financial safety net for Ugandans.”

Market Concentration and Competitive Landscape

The report also shed light on the concentration within the non-life and life segments. In the non-life insurance space, the top five companies—UAP Old Mutual, Sanlam General, Jubilee Health, Jubilee Allianz, and Britam—account for nearly 60% of the market. UAP Old Mutual alone wrote premiums worth UGX 184.9 billion.

In the life insurance sector, market concentration is even more pronounced. The top three companies—Prudential (UGX 196.3 billion), ICEA Lion Life, and Old Mutual Life—control over 60.5% of the market, with the top five collectively holding more than 84% share.

“These figures suggest a somewhat unbalanced competitive field,” noted the report, adding that operational efficiency and cost discipline remain key differentiators among life insurers.

Sector Composition Shift: Life Insurance Gaining Ground

For the first time in recent years, life insurance gained more ground in industry composition:

• Non-life insurance now accounts for 55.95% of the total industry GWP, down from 58.14% in 2023.
• Life insurance’s share rose to 39.79%, up from 38.14%.
• HMOs contributed 3.96%, and microinsurance made up 0.09%.

This subtle shift reflects changing consumer preferences, long-term savings culture, and growing trust in life-based financial products.

Claims Payouts and Policy Penetration

Uganda’s insurance companies paid out UGX 887.4 billion in claims in 2024, representing 50.3% of total GWP, up from UGX 727.6 billion the previous year. This rise in claims payment, according to the Authority, signals improved responsiveness and maturing risk management protocols.

A total of 801,927 policies were issued, with 684,561 individual policies and 117,366 corporate or group policies, indicating that 85.4% of all policies are held by individuals—a clear sign that the retail market is expanding rapidly.

Intermediary Channels: Brokers and Bancassurance on the Rise

Distribution channels continued to evolve in 2024:

• Brokers collected UGX 589.5 billion in premiums—33.4% of all insurance premiums, a growth of 14.72%.
• Bancassurance grew even faster, collecting UGX 225 billion, up 25.36% from 2023. The channel now contributes 12.76% of total industry premiums.

“This growing role of brokers and bancassurance demonstrates a shift toward professional, advice-based insurance sales and improved access via financial institutions,” said Kaddunabi.

IRA Achieves ISO 9001:2015 Certification

A major regulatory milestone in 2024 was the Insurance Regulatory Authority’s achievement of ISO 9001:2015 certification, signaling global standards in Quality Management Systems. Kaddunabi noted that this certification strengthens stakeholder trust in IRA’s processes and commitment to service excellence.

Looking Ahead: A Promising 2025

The sector entered 2025 on strong footing. By the end of Q1 2025, total premiums stood at UGX 629.4 billion, a remarkable 24% increase compared to UGX 507.5 billion in Q1 2024. The Authority forecasts continued upward momentum throughout the year across all segments—life, non-life, health, and microinsurance.

Several trends are expected to define 2025:

• Introduction of Takaful insurance (Sharia-compliant), targeting new consumer segments.
• Tech-driven products such as parametric insurance and AI-powered underwriting.
• Greater focus on wellness-linked products—integrating health, wearables, and reward systems into policies.

Strategic Priorities for 2025

To guide future sector transformation, the IRA outlined five strategic priorities:

1. Embed ESG and wellness to attract impact investments and build long-term resilience.
2. Shift to solution-based offerings, enhancing customer experience and trust.
3. Invest in digital capabilities, including data analytics, AI, and mobile-based insurance services.
4. Expand into underpenetrated markets, including Islamic finance consumers and low-income earners.
5. Align with evolving global regulations, including IFRS 17, governance, and solvency frameworks.

Conclusion: Innovation as a Lifeline

The report ended with a reminder that the sector’s future lies not in strength or size, but in its ability to adapt—quoting Charles Darwin:

“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.”

As Uganda’s insurance landscape continues to evolve, the message from the IRA is clear: those who innovate, listen to customers, and invest in technology and inclusion will be the true leaders of tomorrow’s financial protection market.