Ugandan insurers warned: Innovate or risk irrelevance

KAMPALA — Uganda’s insurance companies have been urged to embrace innovation, data-driven decision-making and emerging technologies or risk being left behind in an increasingly volatile business environment.

Industry leaders attending the 68th Chief Executive Officers’ Meeting organised by the Insurance Regulatory Authority of Uganda (IRA) heard that future growth in the insurance sector will depend on the ability of firms to adapt to rapid technological change, evolving customer expectations and global economic disruptions.

Speaking at the meeting, Peter Kimbowa, Team Leader at CEO Summit and former National Social Security Fund board chairperson, said insurance companies can no longer rely on traditional business models if they are to remain competitive.

“It is very possible and very easy for an insurance company to prosper using old models, but it will become extremely difficult for you to survive the future,” he said.

The meeting was held under the theme, “The Future CEO: How to Expand Insurance Business in Times of Upheaval.”

Kimbowa noted that insurers are operating in a business environment increasingly shaped by geopolitical tensions, pandemics, technological disruption and changing consumer behaviour.

The sector, like the wider financial services industry, has had to navigate shocks ranging from the Covid-19 pandemic and global supply chain disruptions to ongoing geopolitical conflicts and changing trade and investment patterns.

According to Kimbowa, future success will require insurance companies to combine technology, human talent and collaborative partnerships while maintaining agility in decision-making.

“Growth in the insurance industry will depend on the ability to combine technology, human capability and ecosystem thinking while remaining agile,” he said.

He urged insurers to invest in systems that enable early detection of emerging risks and opportunities, arguing that the industry’s future will increasingly depend on anticipating change rather than reacting to it.

However, Kimbowa cautioned against overreliance on artificial intelligence, saying technology should complement rather than replace human judgment.

While AI is transforming business operations and risk assessment, he said qualities such as creativity, imagination, empathy and emotional intelligence remain uniquely human and critical in decision-making.

“Human beings are more intelligent than computers. Technology should support decision-making, but leadership cannot be outsourced to machines,” he said.

Kimbowa also challenged insurance executives to break away from siloed operations and embrace collaboration both within the industry and across sectors.

He argued that digital transformation is increasingly blurring traditional industry boundaries, making partnerships essential for growth.

The call comes at a time when Uganda’s insurance industry is under pressure to deepen penetration levels and develop products that address emerging risks in a rapidly changing economy.

Insurance Regulatory Authority Chief Executive Officer Ibrahim Kaddunabbi Lubega said industry leaders must remain open-minded and willing to rethink traditional approaches if they are to unlock new growth opportunities.

He noted that insurers should align their strategies with Uganda’s broader economic transformation agenda under the National Development Plan IV.

According to Lubega, government investments in Agro-industrialisation, Tourism development, Mineral-based industrialisation, and Science, Technology and Innovation — collectively known as the ATMS sectors — present significant opportunities for insurance companies.

“As the economy transforms, new risks and opportunities will emerge. The insurance sector must position itself to support these investments and the businesses that come with them,” he said.

Government is expected to continue directing substantial resources towards the priority sectors while attracting private investment, creating demand for specialised insurance products and risk management solutions.

Lubega said the industry must move beyond conventional insurance offerings and develop products capable of responding to future risks that may not yet be fully understood.

He stressed that insurance’s core role as a risk management tool makes it uniquely positioned to support economic transformation if companies can anticipate emerging challenges.

The regulator also called on insurers to make greater use of data and evidence when making strategic decisions.

Industry leaders argued that data-driven approaches can help companies better understand customer needs, improve product development and respond more effectively to crises.

Kimbowa cited disease outbreaks, climate-related events and economic shocks as examples of situations where timely data can improve decision-making and strengthen resilience.

As digital technologies continue to reshape financial services globally, insurance executives were told that future competitiveness will depend less on company size and more on adaptability.

The message from the industry gathering was clear: insurance firms that fail to innovate may continue to survive in the short term, but sustaining growth in the years ahead will require a new generation of leadership capable of navigating uncertainty, embracing technology and anticipating change.