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Insurance companies should lead energy transition – IRA
IRA says insurance firms must invest to be able to lead Uganda's energy transition agenda from fossil fuels. Photo / File
What you need to know:
- The Insurance Consortium for Oil and Gas Uganda has so far written $1.75m and Shs6.56b in premiums this year
Members of the Insurance Consortium will play a significant role in Uganda’s energy transition agenda.
Mr Ibrahim Kaddunabbi Lubega, the Insurance Regulatory Authority said since its inception, the Insurance Consortium for Oil and Gas Uganda has contributed to premium generation and risk retention, totaling $22m and Shs82b, but in 2024, there was a decline of 82 percent in written premiums compared to 2023.
"Encouragingly, 2025 has shown a strong recovery, with premiums surpassing last year's total. As of today, [the consortium] has written $1.75m and Shs6.56b in premiums, marking a positive growth trajectory,” he said during the 2025 Insurance Consortium for Oil and Gas symposium in Kampala.
The Insurance Consortium for Oil and Gas Uganda, managed by Uganda Reinsurance Company, pools expertise and capacity to effectively cover high-risk exposures, such as environmental damage, accidents, and spills.
This also improves risk retention within Uganda, ensuring that local insurers play a significant role in underwriting high-risk sectors.
Insurance remains crucial in risk mitigation, environmental protection, ensuring financial stability, and regulatory compliance.
Thus, Mr Kaddunabi said as Uganda transitions towards a more diversified energy sector - commercially producing oil while also investing in renewable energy - the insurance sector must innovate and rise to the challenge of mitigating risks, ensuring sustainability of investments, and providing financial security.
He also noted that the global insurance landscape was undergoing transformation driven by technological advancements, regulatory shifts, and a growing need for sustainability, with Uganda’s energy sector evolving into development of petroleum resources and investing in renewable energy.
The evolution, therefore, implies that insurers will need to develop new products tailored to green energy, carbon capture, and clean technology investments.
The sector will also be required to strengthen reinsurance capacity to handle large-scale claims, especially in complex energy projects, and to enhance public-private partnerships to support sustainable energy financing through risk-sharing mechanisms.
Mr Jonan Kisakye, Uganda Insurers Association chief executive officer, said there was need for insurers to bolster their financial capabilities to take advantage of available opportunities in the oil and gas sector.
“Currently, we are conducting business in the Tilenga, Kingfisher, and East African Crude Oil Pipeline fields, and we are confident that we will secure more projects in the future,” Kisakye stated.
