What you need to know:
- There are less than five million people in Uganda who hold an insurance policy
Insurance Regulatory Authority (IRA) has said tapping into Saving and Credit Cooperative Organisations (Saccos) will be key in increasing insurance penetration, which currently stands at less than 1 percent.
Speaking at the launch of UAP Old Mutual Sacco Assurance product, Mr Protazio Sande, the IRA director planning, research and market development, said less than five million Ugandans have an insurance policy, noting that there was need to develop innovative products that bring insurance closer to the people.
Therefore, he said, the Sacco Assurance product was a welcome innovation that is expected to increase insurance penetration, which has remained low despite a number of innovations.
“There are over 40,000 cooperatives with millions of dollars, and if we can get them into insurance, then the concentration of less than 1 percent would be potentially high,” Mr Sande said, highlighting that even with the low penetration, insurance has experienced growth with gross written premium increasing to Shs1.4 trillion.
The Sacco Assurance platform seeks to empower cooperative and Sacco members by increasing accessibility to comprehensive insurance solutions that cater to their diverse needs.
Mr Patrick Kimathi, the UAP OLD MUTUAL Life managing director, said the initiative introduces a transformative approach to insurance distribution, which will enable Saccos and microfinance institutions to seamlessly extend a range of insurance products to members and foster a culture of financial security and empowerment.