Business
Insurance Firms Pay UGX 800 Billion in Claims, But Uptake Still Below 1%
Uganda’s insurance industry has paid out more than UGX 800 billion in claims over the past year, a strong indication that the sector is fulfilling its core mandate, according to the Insurance Regulatory Authority of Uganda (IRA).
The payouts represent nearly 50% of the UGX 1.8 trillion collected in total premiums during the same period, a figure the IRA says should inspire more Ugandans to take up insurance.
Dr. Ibrahim Kaddunabi Lubega, the Chief Executive Officer of IRA, revealed the figures during a high-level media workshop held at Fairway Hotel in Kampala under the theme “Bridging the Gap: Rethinking Insurance Reporting in Uganda.”
“The ultimate goal of why people insure is so that in the unfortunate event of a loss, they will be compensated,” Dr. Kaddunabi said.
“If UGX 800 billion was paid out in claims, then clearly insurance is delivering on its promise.”
The workshop, organized by the Uganda Insurers Association (UIA), brought together media professionals and industry players to discuss how better reporting can demystify insurance and boost public understanding.
Despite the growing payouts, insurance penetration in Uganda remains below 1%, largely due to low awareness, public mistrust, and limited product diversity—especially for low-income earners.
Dr. Kaddunabi emphasized that with a robust regulatory framework in place, Ugandans should feel confident that genuine claims will be honored.
“If you don’t have an insurance policy now, you only have yourself to blame,” he said. “The regulator is here to ensure that your claims are paid. That is our role.”
Ruth Namuli, Chairperson of UIA and CEO of Sanlam General Insurance, called on the media to partner with the industry in raising awareness.
“This is the beginning of a continuous engagement with the media,” Namuli said.
“If we can simplify insurance information for the public, we can build trust and increase uptake.”
Namuli noted that the sector is committed to educating the public and expanding access to inclusive, affordable insurance products.
As Uganda’s economy grows and risks become more complex, industry leaders say insurance must evolve into a trusted safety net, not just for the wealthy, but for everyone.
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