Overview:

Uganda’s insurance industry is set for a tech-led transformation in 2026 following a year of rising premiums and major digital reforms like electronic motor stickers.

KAMPALA, Uganda — Technology and digital transformation are set to become the primary engines of growth for Uganda’s insurance industry as it enters 2026, following a year of significant structural shifts and rising premiums.

Data from the first three quarters of 2025 shows gross written premiums reached 1.57 billion shillings, a jump from 1.39 billion shillings during the same period in 2024. Industry leaders say this upward trajectory is being sustained by a move away from traditional manual processes toward digital-first solutions.

Digital transformation takes hold

A major catalyst for this shift was the 2025 rollout of digital Motor Third Party stickers. The move was designed to eliminate the risk of counterfeit paper stickers and fraud while allowing motorists to buy and verify their policies from home.

Jonan Kisakye, chief executive of the Uganda Insurers Association, says digital transformation will remain central to the industry’s future. The association has formed partnerships with tech-focused groups, including the Financial Technology Service Providers Association, to make insurance products more accessible via mobile platforms.

Ibrahim Kaddunabi Lubega, chief executive of the Insurance Regulatory Authority, noted that while the industry is consolidating through mergers, it is also diversifying. The recent entry of Tamini General Insurance, the country’s first sharia-compliant provider, and the transition of AAR Health Services into a full general insurer, reflect a market adapting to specific consumer needs.

Growth through innovation

The sector is placing a heavy bet on microinsurance, which has seen explosive growth. In 2024, the segment grew by more than 130%, reaching 1.64 billion shillings. Experts believe that by leveraging technology to reach low-income earners, the industry can significantly increase its national penetration rate.

To encourage this, the regulator has introduced annual innovation awards, incentivizing firms to develop mobile-led services that simplify claims and payments.

The 2026 outlook

Looking ahead, the industry is leaning on the Insurance Literacy and Market Development Agenda, launched in September 2025. This five-year roadmap aims to demystify insurance for the general public and build trust through more transparent, tech-driven claims handling.

For companies like AAR General Insurance, the focus in 2026 will be on providing a “one-stop” digital experience. Managing director Christine Nassuna said their evolution into a non-life insurer allows them to offer motor, property, and travel insurance under a single, digitally integrated brand.