Insurance posts slow growth, microinsurance grow by 61 %

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.

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.

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.

“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.

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.

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