Overview:

Industry leaders at the 8th IBAU conference in Mbarara address why Uganda’s insurance penetration remains below 1% despite premiums hitting 2 trillion shillings and how to bridge the trust deficit.

MBARARA, Uganda — The chief executive of Mirai General Insurance has committed to a 24-hour claims settlement benchmark, a move aimed at addressing a persistent trust deficit that has stifled the growth of the sector in East Africa’s third-largest economy.

Speaking at the 8th Annual Insurance Brokers Association of Uganda (IBAU) conference, Joseph Nsubuga framed the initiative as an operational necessity to bridge the gap between record industry growth and low public confidence.

A promise delayed is a promise denied, Nsubuga told delegates. He argued that trust in the financial sector is a measurable outcome of service delivery, positioning the one-day turnaround as a litmus test for an industry often criticized for bureaucratic delays.

The commitment highlights a stark paradox in the Ugandan economy. While gross written premiums climbed past 2 trillion shillings in 2025, insurance penetration remains stagnant below 1 percent of GDP. For many households and small enterprises, formal insurance remains a peripheral service, often perceived as inaccessible or unreliable.

Bank of Uganda Deputy Governor Augustus Nuwagaba, delivering the keynote address, described trust as the invisible infrastructure of financial stability. While acknowledging that claims ratios have improved to nearly 50 percent of premiums, Nuwagaba said the sector has yet to meaningfully penetrate the informal economy that powers the nation.

Nuwagaba urged a shift toward systemic inclusion, calling on insurers to simplify products and adopt higher ethical conduct standards. He noted that such reforms are essential if insurance is to function as a pillar of economic resilience for small businesses and informal workers.

Regulatory shifts are also underway to support this transition. Alhaj Kaddunabbi Ibrahim Lubega, chief executive of the Insurance Regulatory Authority, outlined a move toward risk-based supervision. He said the regulator is adopting an enablement posture to foster microinsurance and technological innovation while maintaining stringent consumer safeguards.

The conference, held under the theme Trust Reimagined: Delivering on the Promise, also emphasized the evolving role of brokers. Participants identified them as the primary custodians of trust, responsible for bridging the divide between complex corporate products and a skeptical public.

Industry stakeholders concluded the summit with a consensus that the sector’s future trajectory rests entirely on the ability to operationalize accountability. While macroeconomic stability and regional integration provide a clear path for expansion, delegates agreed that consistent and transparent execution remains the only viable strategy to secure long-term public credibility.

Sector experts noted that while macroeconomic stability and regional integration provide significant opportunities, the trajectory of the sector depends on its ability to operationalize trust through consistent, transparent performance.