Much as Uganda’s insurance industry is ranked East Africa’s lowest performer in terms of its per centage contribution to the country’s Gross Domestic Product (penetration rate), more cross-border players are expanding their frontiers onto the market.
The latest entrant is Alliance Africa General Insurance headquartered in Tanzania, also with branches in the Comoros.
According to management, the firm ventures onto the Ugandan market with high optimism to create a positive impact through contributing to growth of the industry by leveraging on innovation, integrity and staff technical competence to deliver on its promises.
Speaking to journalists on the sidelines of the launching cocktail held in Kampala recently, the company managing director Mr. K.V.A Krishinan, said although the insurance industry is not booming in the region, the strong belief in the growth potential serves as the company’s driving force for expansion.
“We have lot of confidence in Uganda’s market; it’s dynamic and there is a lot of potential we seek to tap into and stand as a key industry player, add value to the service delivery system and the country’s job market,” he said.
Mr Krishinan added that his company comes to Uganda with skills in taking up oil related businesses, a field they are already accustomed to after years of service in the energy sector with support from the world’s biggest re-insurance companies. “We offer services ranging from fire, marine, motor, and engineering, among others, providing comprehensive packages that include most of the personal and business needs as well as ensuring expeditious settlement of the claims raised by our customers,” he added.
Insurance Regulatory Authority chief executive officer Kaddunabbi Lubega re-assured the new players of a stable, competitive and professional insurance business environment in the country. He said the insurance potential in the country is still untapped and the entry of new players enhances efforts to exploiting the industry to its full potential.
There are about 30 insurance companies, 12 health membership organisations, one reinsurance broker, 27 insurance brokerage firms and 18 Loss assessors/Adjustors that have been licensed in Uganda. However, the penetration rate in Uganda is estimated at 0.814.2 per cent, compared to Kenya’s 3.5 per cent, Rwanda’s 2.3 per cent, Tanzania’s 1.1 per cent and South Africa’s 14.2 per cent.