The Executive Director of the Insurance Regulatory Authority of Uganda Hajj Ibrahim Lubega Kaddunabbi has urged sector players to design products that will support the agriculture sector amidst the changing global weather patterns among other challenges.
Hajj Kaddunabbi, cited the Parish Development Model which is hinged on transforming households from poverty to the money economy, largely through agriculture as one of the opportunities that insurers can leverage to expand into this promising sector but also make the government program a success.
Kaddunabbi made the remarks while speaking at the launch of the Kenya Reinsurance Corporation Uganda office in Bugolobi.
Kaddunabbi revealed that the Authority is engaging with different players in the industry to interest them to support agricultural related products that will grow the insurance portfolio.
He adds that engagement across various local and international players will continue to enhance support to Africa’s biggest source of employment agriculture.
“I want to remind you that in Uganda there is rolling out of the Parish Development Model which has a component of agriculture.
Discussions have already started to ensure how the Parish Development Model would be insured more specifically the agriculture bit of it, at the IRA of Uganda, we are committed to providing continuous and indeed deliberate measures which are intended to ensure that the stakeholders’ interests are protected and indeed we focus on insurance claim settlement processes as a core mandate,” Kaddunabbi.
Dr. Hillary Maina Wachinga, the Kenya ReInsurance Managing Director acknowledges the immense potential and opportunities that lie in Uganda, with the vibrant economy and dynamic insurance sector, Uganda offers a fertile ground for its business to flourish.
Sector players note that Uganda’s insurance sector is steadily growing backed by the promising economic outlook data.
While at the launch, it emerged that the company doubled its revenue in just 4 years signaling a growth in insurance up-take.
George Okotha, the Chairman of the Board of Directors of Kenya Reinsurance Corporation (Uganda) expressed optimism about the Insurance industry in Uganda.
“our growth insurance premier increased from 6 billion Uganda shillings in 2020 when we first started the business to 13.4 billion shillings in 2022, now the subsidiary recorded a profit after tax of 1.33 billion Uganda shillings in 2022, total asset increased from 17 billion Uganda shillings, these results give hope for a brighter future,” Okotha.
Wachinga says the Kenya Re firmly believes that the future of the Insurance industry lies in the seamless integration of technology and customer-centricity.
Wachinga highlights how technology is already changing the face of the sector, so as the company expands its operations in Uganda, it is committed to leverage these advancements to enhance service delivery.
He notes that Kenya Re is also exploring how to incorporate Technology in its operations to cater for its customers across different timezones especially in Underwriting.
The company is providing opportunities for young innovators who have brilliant ideas on how to revolutionize the future of the sector.
He promises that the company is to embrace partnerships with different stakeholders in the insurance industry and that is one of the reasons why stakeholders should be glad for Kenya Reinsurance’s entry into the market.
“our establishment in Uganda allows us to localize insurance services tailored made to the unique needs of the Uganda Market, we have assembled a team of highly professionals who possess extensive knowledge and experience in this region,” Wachinga said.
Kenya Reinsurance presence in Uganda will help bridge the gap of missing services locally. The Uganda subsidiary will reduce the reliance on international Reinsurance companies which often come at huge costs.
Wachinga adds that by reinforcing its local presence, the company aims at providing a more cost-effective solution for its partners.
According to the group’s managing director, the company’s goal is to foster self-sufficiency in the Reinsurance sector and contribute to Uganda’s economic growth by Retaining Value within the country.
At the moment, Kenya Re provides solutions in general and life Reinsurance and Uganda contributes to 2% of its overall business, now there is hope for growth.