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Non-life insurance accounted for 55.95% of total premiums—slightly down from 58.14% the previous year
Kampala, Uganda | JULIUS BUSINGE | Uganda’s insurance sector capped off 2024 with an impressive 10% growth in gross written premiums (GWP), rising from UShs 1.60 trillion in 2023 to UShs 1.76 trillion in 2024. This strong performance, highlighted at the CEO Breakfast Presentation on June 12, in Kampala, was driven by heightened business activity, increased digital adoption, and the sector’s growing importance in the country’s economic framework.
Presenting the annual industry reflections and outlook for 2025, Insurance Regulatory Authority (IRA) CEO Ibrahim Kaddunabi Lubega acknowledged the sector’s resilience in the face of macroeconomic volatility, climate risks, and evolving regulatory demands. He noted that insurance players embraced innovation, deepened customer-centric solutions, and made meaningful inroads toward inclusive financial services.
The non-life segment, which continues to dominate the market, recorded UShs 986.5 billion in GWP in 2024, marking a 5.83% increase from 2023. Life insurance, however, saw even faster growth, expanding by 14.74% to reach UShs 701.6 billion. Health Membership Organizations (HMOs) contributed UShs 69.8 billion, while microinsurance saw a staggering 131.42% surge to UShs 1.64 billion, indicating growing uptake among underserved and lower-income demographics.
The insurance industry’s composition reflects an evolving landscape. Non-life insurance accounted for 55.95% of total premiums—slightly down from 58.14% the previous year—while life insurance grew its share to 39.79%. The remaining 3.96% was contributed by HMOs, up from 3.52% in 2023.
Claims surge
In terms of claims, the industry disbursed UShs 887.4 billion in 2024, a notable rise from UShs 727.55 billion the year before. This accounts for approximately 50.3% of total premiums, highlighting the sector’s critical role in providing financial protection during crises. Policy uptake also expanded, with a total of 801,927 policies issued. Of these, 85.4% were individual policies, indicating rising interest and engagement at the grassroots level.
Market dynamics, however, remain concentrated. In the non-life segment, the top three companies held 41.1% of market share, and the top five controlled nearly 60%. The life insurance market displayed even greater concentration, with the top three players accounting for 60.5% and the top five commanding 84.4%. While these companies showcased strong underwriting profitability and cost discipline, the disparity in performance among smaller insurers highlighted a need for innovation and operational efficiency across the board.
Distribution channels also recorded solid performance. Brokers collected UShs 589.49 billion in premiums, up 14.72% from the previous year. Their share of total premiums grew to 33.4%, reinforcing the value of expert advice in navigating complex risk environments. The Bancassurance channel performed even better in relative terms, growing by 25.36% to collect UShs 225.01 billion, and now contributes 12.76% of the industry total. Both channels are expected to expand further as digital and financial literacy initiatives gain traction.
The IRA celebrated a significant institutional milestone in 2024, having secured ISO 9001:2015 certification—an international benchmark for quality management. This move is expected to strengthen regulatory oversight and stakeholder confidence.
Future outlook
Looking ahead, the sector enters 2025 on firm footing. Q1 figures already show a 24.01% increase in total premiums compared to the same period in 2024, reaching UShs 629.36 billion. Innovations such as Sharia-compliant Takaful products, wellness-linked insurance offerings, and parametric coverage are anticipated to attract new customer segments and enhance penetration.
Strategically, the IRA has outlined key priorities for 2025. These include embedding Environmental, Social, and Governance (ESG) principles into operations, enhancing customer experiences through value-based solutions, and expanding digital capabilities with data-driven underwriting and mobile-first distribution. The sector is also urged to proactively align with new global standards like IFRS 17 and adapt capital and governance structures accordingly.
Kaddunabi emphasized the sector’s responsibility to transform short-term growth into long-term impact. “Success will depend on balancing disciplined underwriting with bold innovation,” he said. Echoing Charles Darwin, he added, “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.”
