By, Jonathan Bukenya
As at the end of June 2023 the insurance industry has continued to grow favorably, increasing from UShs 711.6billion in Q2 2022 to UShs 828.9billion in Q2 2023, representing a 16.5% growth. During the press conference the CEO of Insurance Regulatory Authority Alhaj Kaddunabbi Ibrahim Lubega attributed the steady growth to different insurance players. “This steady growth is worthy acknowledgement because it is a reflection of, among other things, the sector’s attraction of more customers and/or people (and businesses) committing more money to purchase of insurance”. Kaddunabbi said
Non-life business generated UShs 510.1billion growing from UShs 309.8billion in Q1 2023 (representing about 56.8% of the total premiums from the same segment in the full year, 2022 (i.e., UShs 898.10 billion). When compared with premiums from non-life generated in Q2 of 2022 (i.e., UShs 446.6billion), the current performance represents a 14.2% growth.
Life insurance business also generated UShs 291 billion growing from UShs 147.3billion in Q1 2023 (representing about 58% of the total premiums from life segment underwritten in 2022 i.e. 501.6billion).When compared with premiums from life generated in Q2 of 2022 (i.e., UShs 242.7billion), the current performance represents a 19.9% growth.
HMOs generated UShs 27.3billion growing from UShs 16.6billion in Q1, 2023 (representing about 71.3% of the total premiums underwritten by HMOs in 2022 i.e., 38.3billion). When compared with the corresponding period in 2022 where UShs 22billion was underwritten, the current performance represents a 24.1% growth.
Microinsurance business generated UShs 462.63million growing from UShs 117.51million in Q1, 2023. When compared with the corresponding period in 2022 where UShs 317.4million was underwritten, the current performance represents a 45.8% growth. In terms of market composition, Non-life accounted for 61.6% and Life, 35.1% of the aggregate industry premiums underwritten in the report period. The rest of the classes combined accounted for 3.3%.
The Ceo also highlighted on the Claims Payouts Insurance is fundamentally a promise to provide financial protection in times of need. When individuals or businesses purchase insurance policies, they do so with the expectation that the insurer will be there to help them recover from unexpected losses or events. Paying claims therefore fulfills this promise and maintains the trust between policyholders and insurers.
Our core mandate as an Authority is to ensure that this promise is fulfilled.Gross Claims paid on account of both life and non-life (including HMOs) accounted for 37.6% of the total premiums registered in Q2,2023 (equivalent to UShs 311.3billion compared to 43.7% of total premiums registered in Q2, 2022. We shall continue to examine the trends as the year progresses and ensure that all payable claims are paid, and in good time.
