Uganda’s insurance sector premiums cross Shs2 trillion mark

KAMPALA— Uganda’s insurance industry has crossed the Shs2 trillion mark in annual premiums for the first time, signalling growing demand for financial protection as the sector seeks to deepen its contribution to the economy.

The Insurance Regulatory Authority of Uganda (IRA) said total Gross Written Premiums (GWP) rose by 14.72 per cent from Shs1.764 trillion in 2024 to about Shs2.024 trillion in 2025.

The milestone was highlighted on Tuesday when an IRA delegation led by acting chief executive officer Dr Protazio Sande briefed the State Minister for General Duties, Ms Cissy Mulondo, on the performance and growing importance of the insurance industry.

Dr Sande said the increase in premiums reflected rising demand for insurance products and growing awareness among individuals, households and businesses of the need to protect themselves against financial shocks.

The strongest growth was recorded in life insurance, whose premiums rose by 39.21 per cent from Shs702.2 billion in 2024 to Shs977.6 billion last year.

The sharp rise in life insurance business points to increasing uptake of products designed to provide households with financial protection against death, disability and other long-term risks.

However, IRA said the growth in premiums should not obscure the significant gap that remains in insurance coverage.

A large number of Ugandan households and small businesses remain either uninsured or inadequately insured, limiting the sector’s ability to cushion them against economic shocks and protect their assets.

“Insurance is increasingly becoming an important pillar of financial inclusion and economic transformation,” Dr Sande told the minister, according to IRA.

The regulator also stressed the need for government and other institutions to insure national and public assets, arguing that adequate insurance would reduce the financial burden on the Treasury when public infrastructure and other assets are damaged or destroyed.

The briefing covered the overall performance of the industry, regulatory developments, emerging opportunities and consumer protection, as well as the role of insurance in supporting Uganda’s economic transformation.

Minister Mulondo commended IRA for the industry’s performance and emphasised the need to ensure that the growth translates into wider access to insurance services.

She said the regulator has a critical role in maintaining a financially sound and well-regulated insurance industry while ensuring that insurance products become accessible to more Ugandans.

The Shs2 trillion milestone comes as the government seeks to deepen financial inclusion and mobilise greater private-sector participation in economic development.

Insurance companies provide a mechanism through which households and businesses can transfer risks that could otherwise wipe out savings, assets or investments.

For businesses, insurance can help protect investments and support continuity after losses, while life and health-related products can provide households with a financial cushion when faced with major shocks.

Despite the growth in premiums, the industry continues to face the challenge of reaching more Ugandans, particularly those in the informal economy and small businesses.

IRA has therefore continued to emphasise innovation, consumer protection and the development of products that respond to the needs and purchasing power of underserved sections of the population.

The regulator’s latest figures suggest that while the insurance market is expanding, the next challenge is to convert the growth in premiums into broader insurance coverage across the country.

For an economy where many households and businesses remain vulnerable to unexpected losses, increased insurance coverage could help strengthen financial resilience and reduce the need for families and businesses to rely on savings, borrowing or government support when disaster strikes.

The industry’s performance also places greater responsibility on the regulator to ensure that insurers remain financially stable and that consumers receive the protection promised under their policies.