Insurance sector eyes sustainable growth through digitalisation

KAMPALA - According to experts in the insurance sector, its growth is being greatly derailed by dragging of analogue processes.

They have advocated for a boosted pace towards achieving total digitalisation to quicken processes and attract more to the unquestionable advantages of insurance.

In the move towards the goal, Goldstar Insurance Company Limited has announced deliberate interventions, including introduction of an online application to enable policyholders to easily report incidents and make insurance claims.

Speaking during the unveiling of the application in Kampala on Wednesday, Jay Sakaria, the chief actuary at Goldstar Insurance, said the new innovation aims to make it easy for policyholders to make claims.

“We have always believed that the insurance experience should be simple, responsive, and client-centred, and today we are taking a bold step in that direction by unveiling an app that will help our clients manage their claims,” Sakaria said.

According to experts, Uganda's insurance sector can experience a far more the 10% increase in gross written premiums (GWP) experienced in 2024 if Ugandans are able to effectively receive services online.

In the year under review (2024), gross written premiums reached sh1.76 trillion, up from sh1.60 trillion in 2023.

This growth is attributed to various factors, including increased awareness by the Insurance Regulatory Authority (IRA), introduction of new products, such as microinsurance and Islamic insurance (Takaful), which are expected to attract new consumer segments.

Experts claim that the adoption of digital technologies is enhancing customer experience, improving efficiency, and expanding distribution channels.

Sakaria explained that the innovation will help make claims easier, faster and convenient by allowing clients to digitally make their insurance claims, as opposed to physically going to the insurer for the same purpose.

“This innovation gives our clients control of the process, but also allows them to navigate around the process, which is always very stressful. Whether motor accident, property damage or any other loss, one can use this app to make their claims easily and accurately.”

Goldstar Insurance Chief Executive Officer John Kawuma underscored the role of innovation in driving insurance penetration.

“We want to revolutionise how insurance service is received by our clients. The most important stage in receiving insurance service is reporting and making claims. This means this stage should be convenient and easy. Instead of you calling our offices, we are basically saying, go to your app, report your claim, and we can process your claims quickly,” Kawuma said.

He said the app allows interaction between the policyholder and the insurer in real-time.
Enock Mudadi, the Chief Operations Officer for Goldstar Insurance, spoke of revolutionising the insurance sector through the use of technology.

“Insurance is a product which is homogeneous and can’t be patented. What is critical is how you intervene at the point of claims. The app, unlike others, captures information in real-time, including photos, video, GPS location and many other things useful during claims making and enables us to see the kind of intervention we can deploy.”