Uganda’s Insurance Industry Pushes to Make Coverage a Tool Against Poverty, Not a Luxury

Leaders in Uganda’s insurance sector are calling for a mindset shift, urging citizens to view insurance as an essential tool for financial protection and poverty reduction rather than a luxury reserved for the wealthy.

Despite years of awareness campaigns, insurance penetration in Uganda remains stagnant at between 0.7% and 0.8% — one of the lowest in the region. Industry penetration measures gross written premiums against the country’s GDP, and the low figure reflects both limited uptake and deep-rooted misconceptions.

Speaking at the 2025 Insurance Media Workshop, organised by the Uganda Insurers Association (UIA) and other sector players, Joshua Akena, Head of Operations at Old Mutual Life Assurance, said affordable insurance could shield households from slipping into poverty after crises such as the loss of a breadwinner, medical emergencies, or property damage.

“Without insurance, you live a life of uncertainty. One major loss can undo years of hard work. Contrary to popular belief, insurance products are highly affordable and accessible,” Akena said, noting that industry claims in the 2024/25 financial year stood at about Shs 800 billion — nearly half of the total gross written premium.

UIA CEO Jonan Kisakye emphasised the media’s role in changing public perception, saying accurate and consistent reporting could help demystify insurance. “Insurance is a promise, but for it to be trusted, it must be understood. We must expose both the public and insurers to the full scope of what it can do,” he said.

Kaddunabbi Ibrahim Lubega, CEO of the Insurance Regulatory Authority, stressed that insurance was not a luxury but a pillar of economic resilience. “While penetration stands at 0.8 percent, the figure alone doesn’t reflect the industry’s full value. Think about hospital visits covered, claims paid, and assets protected — that’s the real impact,” Kaddunabbi said.

He urged the sector to harness digital technology to expand access, particularly to rural communities, and called for stronger promotion of micro-insurance products targeting vulnerable groups such as farmers and market vendors.

Industry leaders are now challenging both policymakers and the media to help rewrite the narrative, positioning insurance not as a privilege for the few, but as a safety net for every Ugandan household.

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