Uganda's Insurance policies. Factors affecting insurance policies in Uganda for 2026 include increasing demand driven by sectors like oil and gas, regulatory support for innovation and inclusion, and the adoption of new technologies like AI and digital platforms. However, challenges persist, such as the need for improved product accessibility and affordability, particularly for the informal sector, and enhancing public understanding and trust to counter hesitancy and perceived complexity.
Key affecting factors
Economic and sector-specific factors
Oil and Gas Sector: The growth of the oil and gas sector is a significant driver for insurance premiums and risk retention in Uganda.
Agriculture: Government subsidies and increased awareness are boosting the popularity of agricultural insurance, covering areas like weather-based index insurance and livestock insurance.
Regulatory and policy factors
Regulatory Support: The Insurance Regulatory Authority (IRA) is focused on enhancing innovation, promoting digital services, and expanding into underpenetrated markets like Islamic finance and low-income groups.
Product Approval: The IRA reviews and approves insurance products to ensure they are fair and adequately priced.
Compliance: The industry must align with evolving global regulations, such as IFRS 17 and new solvency frameworks.
Technological factors
Digital Transformation: Insurance companies are increasingly using digital platforms and online transactions to make services more accessible and user-friendly.
Technology Adoption: There is a growing focus on tech-driven products like AI-powered underwriting and parametric insurance.
Market and consumer factors
Consumer Understanding: Hesitancy remains due to a lack of understanding, with many viewing insurance as complex and not worth the cost compared to informal savings groups.
Affordability and accessibility: Insurance companies are encouraged to create more affordable schemes and tailor products for different income levels and those in the informal sector.
Trust and perception: Building trust is crucial to address common complaints and perceptions of insurance being a distant or complicated concept.
Operational factors
Claims Payment: Consistent and prompt claims payment is a key factor in retaining policyholders.
Fraud: The industry faces ongoing challenges with fraud, particularly concerning claims verification and underwriting, which requires enhanced vigilance.
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