Insurance companies paid out Shs444.69 billion as claims in 2020, from Shs374.9 billion in 2019, a new report indicates.
This reflects a rise of18.6 per cent, indicating the massive impact of Covid-19 on the insurance sector.
This is contained in the 2020 insurance industry performance report released last Friday.
For instance, the claims under agricultural insurance increasing to Shs4.1 billion in 2020, from Shs1.8 billion in 2019. This could be explained by the effects of Covid-19 which led to the loss of many agricultural products due to limited demand occasioned by the closure of borders culminating into losses especially for perishables and for some, negligible earnings from low priced produce.
For instance, during lockdown, the price of eggs fell exponentially and some farmers were stuck with their produce without market.
Nevertheless, the whole insurance industry in 2020 raised Shs1.06 trillion in gross written premiums (GWP) despite the pandemic.
Al Hajj Ibrahim Kaddunabbi Lubega, the chief executive officer of Insurance Regulatory Authority (IRA), said the industry grew from Shs 974.4billion in 2019 to Shs1.065 trillion in 2020 reflecting a 9.34 per cent growth.
Non-life business which covers things such as cars and buildings grew by 6.9 per cent in 2020, generating Shs664.9 billion in GWP, up from Shs621.69 billion in 2019.
Health Membership Organisations (the medical insurance providers) dropped by 0.7 per cent; generating Shs75.56 billion down from Shs76.11 billion in 2019