Insurance companies in the second quarter of 2020 raised a total
of Shs534b in gross written premiums, a 7 per cent increase from
Shs495b during the same period in 2019.
Data from
Insurance Regulatory Authority (IRA) reflecting the performance of the
sector during the period between April to June 2020, indicates that
there was an increase in premiums across all segments.
The increase is despite a global outcry across different sectors on the impact of Covid-19 on economies.
For instance, non-life insurance, otherwise known as general insurance, registered a 3.4 per cent increase in gross written premiums from Shs336b in 2019 to Shs347b in 2020.
For instance, non-life insurance, otherwise known as general insurance, registered a 3.4 per cent increase in gross written premiums from Shs336b in 2019 to Shs347b in 2020.
Life insurance,
which has been growing exponentially, registered a 20 per cent increase
from 2019 to collect Shs149.6b in the second quarter of 2020.
Health membership organisations recorded Shs37b in 2020 compared to Shs35.6b in the same period in 2019.
Health membership organisations recorded Shs37b in 2020 compared to Shs35.6b in the same period in 2019.
Microinsurance, however, recorded the highest growth in the entire sector, tallying at Shs207m from only Shs29m in 2019.
According to Mr Sande Protazio, the IRA director of market research and development, while there is an absolute growth in real terms, the trend analysis reflects a reduction in growth of gross written premiums.
According to Mr Sande Protazio, the IRA director of market research and development, while there is an absolute growth in real terms, the trend analysis reflects a reduction in growth of gross written premiums.
“This
must be the smallest increase we ever had. When you look at trend
analysis, you will notice it is a 5 per cent decline in comparison to
the 2019 growth from 2018,” he said, but noted growth in microinsurance
sector has been helped by adoption of technology by the micro insurers.
“The micro players have adopted technology to distribute
microinsurance products and it is those innovations that have delivered
growth,” he said.
Uganda’s insurance sector has 21 general, nine life and two micro insurers, among others.
Uganda’s insurance sector has 21 general, nine life and two micro insurers, among others.
Edge
Micro, is the newest entrant into the microinsurance space placing
competition on Grand Micro Insurance Company which made its debut in
Uganda in 2018.
editorial@ug.nationmedia.com
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