Uganda’s insurance industry has crossed the UGX 2 trillion mark in gross written premiums (GWP) for the first time, highlighting the sector’s growing contribution to financial protection, inclusion and economic development.

The milestone was highlighted during a briefing by the Insurance Regulatory Authority of Uganda (IRA) to State Minister for General Duties Hon. Cissy Mulondo, where the regulator presented the latest performance of the country’s insurance industry.

IRA Acting Chief Executive Officer Dr. Protazio Sande said total insurance premiums increased by 14.72 percent in 2025, rising from approximately UGX 1.764 trillion in 2024 to UGX 2.024 trillion in 2025.

The performance marks a significant expansion of Uganda’s insurance market, with the regulator attributing the growth to increasing demand for insurance products and greater awareness of the role insurance plays in protecting individuals, families and businesses.

The strongest growth was recorded in the life insurance segment, whose premiums increased from about UGX 702.2 billion in 2024 to UGX 977.6 billion in 2025.

That represents annual growth of 39.21 percent, making life insurance one of the major drivers behind the industry’s record performance.

According to IRA, the rapid expansion of life insurance reflects growing interest in long-term financial security, family protection, wealth creation and retirement planning. The regulator said the development points to a gradual shift in how Ugandans view insurance as part of broader financial planning.

The latest figures also show that Uganda’s insurance sector is becoming financially larger. IRA reported that total industry assets reached approximately UGX 3.459 trillion in 2025.

The growth in premiums was accompanied by an increase in claims payments.

IRA reported that insurance companies paid approximately UGX 934.55 billion in genuine claims during 2025, up from UGX 887.55 billion in 2024.

The regulator said the rising value of claims paid demonstrates the sector’s increasing capacity to provide financial support to policyholders, beneficiaries, families and businesses affected by insured events.

Claims payments are particularly important in strengthening public confidence in insurance because they demonstrate the practical value of having financial protection against unexpected losses.

Despite the strong growth recorded in 2025, IRA says a major challenge remains: too few Ugandans and businesses have adequate insurance cover.

Many households and small businesses remain either uninsured or underinsured, limiting the wider economic and social benefits that insurance can provide.

The regulator has therefore emphasized the need to expand access to affordable and relevant insurance products while improving public awareness and consumer protection.

IRA has also highlighted the importance of ensuring that government and other national assets are adequately insured. Discussions on the insurance of national assets have progressed, with government motor vehicles among the areas receiving attention.

The growth of the insurance industry comes as Uganda seeks to deepen financial inclusion and strengthen the resilience of households and businesses.

Insurance can help individuals and companies manage financial risks arising from illness, accidents, property damage, business disruptions and other unexpected events. A stronger insurance industry can therefore support economic activity by helping households and businesses recover from losses without bearing the entire financial burden themselves.

The Ministry of Finance briefing also emphasized the sector’s wider role in economic transformation, regulation, consumer protection and financial inclusion.

Hon. Cissy Mulondo commended IRA for its work and noted that the regulator has an important role in ensuring Uganda’s insurance industry remains financially sound, properly regulated and accessible to more Ugandans.

The UGX 2 trillion milestone therefore represents more than an increase in premium collections. It also signals the expanding role of insurance in Uganda’s financial system, while underscoring the need to bring more households, entrepreneurs and businesses into the formal insurance market.