Insurance industry records 22% growth
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Growth was attributed to uptake of large infrastructural project.
KAMPALA. Uganda’s insurance industry has grown by 21.58 per cent in the last financial year according to the Insurance Regulatory Authority (IRA).
The growth from 9 per cent in 2014 to 21.58 per cent in 2015 is attributed to uptake of large infrastructural projects and the private sector.
“The gross premium underwritten by the insurance industry has increased in the 2015 financial year by 21.58 per cent which is composite growth. Infrastructure is one of the factors that triggered its growth,” Mr Ibrahim Kaddunabbi Lubega, the chief executive officer Insurance Regulatory Authority (IRA), said.
He added that one of the factors was the uptake of local insurance by large infrastructural projects such as Isimba hydropower project, Entebbe airport, Nile Bridge in Jinja, Kampala-Entebbe Expressway and various small dam projects.
The budget for the transport and works sector was more than doubled to Shs3.3 trillion in 2015, with an additional Shs753.3 billion being allocated to the sector compared to 2014.
Ultimately, life insurance premiums continued to grow at a rate of 35.67 per cent in 2015 while non-life and health maintenance organisations (HMOs) grew by 21.47 and 0.26 per cent respectively.
IRA assistant director research and market development Sande Protaziosaid this is because HMOs are young and still being nurtured. “Within a short time, they will overtake other sectors,” he said.
The growth of the economy also contributed to the increment. It led to the increase of insurable assets.