Regulator says Uganda’s insurance industry paid out UGX 800 billion in claims

KAMPALA, UGANDA – Uganda’s insurance industry paid out more than UGX 800 billion in claims in 2024, representing 50% of the total premiums collected, according to the industry’s regulator.

Dr. Ibrahim Kaddunabi Lubega, CEO of the Insurance Regulatory Authority of Uganda (IRA), stated the figure demonstrates that insurance is achieving its core purpose.

“The ultimate goal of why people insure is in the unfortunate event that they suffer a loss, they will be paid,” Dr. Kaddunabi said at a recent workshop. “I’m happy to say that if UGX 800 billion was paid back in the form of claims, it means the reason why people insure is being achieved.”

Despite these significant payouts, the country’s insurance penetration rate remains below 1%. This low uptake is attributed to several factors, including public mistrust, low public awareness, and a narrow range of products.

Dr. Kaddunabi encouraged more Ugandans to take up insurance, noting that the regulator is in place to ensure claims are paid. “If you do not have an insurance policy now, you only blame yourself because the insurance regulator is there to ensure that if you have insurance and there is any problem, you will be paid. You will be compensated,” he added.

He was speaking at a workshop titled “Bridging the Gap: Rethinking Insurance Reporting in Uganda,” hosted by the Uganda Insurers Association (UIA) at Fairway Hotel. The half-day event aimed to help reporters better understand insurance concepts to improve public reporting.

Ruth Namuli, UIA Chairperson and CEO of Sanlam General Insurance, described the workshop as the beginning of a “continuous engagement” with the media. She said the goal is to work collaboratively to simplify insurance information for the public, which will help build trust and increase market penetration.

“We can’t do it without our media friends,” Namuli said.