Ugandan Insurers Urged to Innovate for Booming Pension Sector

Insurance companies in Uganda are being strongly encouraged to develop and promote retirement-focused products to capitalise on the rapidly expanding pension sector. This call to action came during the inaugural Thought Leaders Forum on Pensions, held recently at Mestil Hotel and organised by the Uganda Insurers Association (UIA).

Rita Faith Nansasi, Acting CEO of the Uganda Retirement Benefits Regulatory Authority (URBRA), highlighted that insurers are uniquely positioned to bolster the nation’s pension system. Their expertise in long-term financial planning, investment management, and risk mitigation makes them crucial partners in securing Ugandans’ retirement.

“Retirement remains a distant concern for many Ugandans, yet it is one of life’s most critical phases that demands consistent saving and planning,” Nansasi stated, emphasising the urgent need for a shift in public mindset regarding retirement. She also stressed the importance of collaborative efforts among regulators, insurers, and financial institutions to build public trust and increase participation in pension schemes. Nansasi noted that the role of insurers in the pension space is often misunderstood or underutilised, reaffirming URBRA’s commitment to fostering an inclusive and sustainable retirement system for both formal and informal sector workers.

Jonan Kisakye, CEO of the Uganda Insurers Association (UIA), echoed these sentiments, asserting that the insurance sector must actively build public confidence and demystify its role in retirement planning. “Expanding Uganda’s retirement system requires strategic reforms and collective action. The insurance industry is taking proactive steps to support retirement plans,” Kisakye said.

The forum’s timing is particularly pertinent, as Uganda’s insurance sector recently posted a robust 13.2% growth in the last quarter of 2024, a promising indicator that calls for increased agility, innovation, and deeper cross-sector understanding of pensions.

Mr. Obel, a senior representative from the Insurance Regulatory Authority (IRA), appealed to Ugandans to consider insurance products beyond traditional motor and property coverage. He emphasised that life insurance offers vital long-term solutions that secure the future of families, particularly in retirement. Obel also commended the IRA’s ongoing initiatives in digital inclusion and public education, specifically targeting the informal sector.

Mulenga Mutai, CEO of Gralix Actuaries and the forum’s keynote speaker, provided a broader continental perspective on pension challenges. He highlighted that a significant 95% of Africa’s pension assets are concentrated in just five countries: South Africa, Nigeria, Kenya, Namibia, and Botswana. Mutai called for greater innovation, particularly in designing products that effectively address longevity, investment, and inflation risks.

He concluded by urging Ugandan insurers to take a leading role in building resilient and inclusive retirement systems for both the nation and the wider African region.