Overview:
The industry posted an 18.58% growth with sh711.63bn recorded in Q2 2022 compared to sh600.105bn in Q2 2021. This growth according to the regulator is a statement of resilience in a contracting economy as a result of challenging macroeconomic fundamentals.
Mr. Ibrahim Kaddunabbi Lubega, the ECO Insurance Regulatory Authority says the industry will not be hugely affected by the unstable economy which has reduced disposable income amongst Ugandans.
Mr Lubega was speaking at the release the of cumulative performance report ending June 2022.
He explained that based on resilience demonstrated by the sector and now the expected government releases for public infrastructure, it is still clear that growth will be recorded by the end of the year.
“We project the sector to remain on a positive trajectory of about 15% in the next quarter declining to 12% by end of year. But this is still good, we know there is less disposable income amongst Ugandans but we are confident with some business coming through from the oil and gas sector, we can still remain on course,” Kaddunabbi said.
The industry posted an 18.58% growth with sh711.63bn recorded in Q2 2022 compared to sh600.105bn in Q2 2021. This growth according to the regulator is a statement of resilience in a contracting economy as a result of challenging macroeconomic fundamentals.
Contribution per segment saw non-life businesses generate 58% of the total premium in the full year recording sh706bn.
This compared to the premiums collected under non-life in 2021, means a 3.95% growth in Q2 of 2022.
Bancassurance distribution channel registered sh62.13bn compared to sh49.08bn which is attributed to the access of a one-stop centre for financial services which is expected to continue growing.
The operationalisation of the local marine cargo insurance that took effect on July 1, 2022, is also seen as a fresh platform that will register returns as already importers are embracing the arrangement.