Insurance industry regulator projects an upward growth trajectory

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The Insurance Regulatory Authority of Uganda's chief executive officer is confident the industry will further post positive results in the remaining half of 2025.

According to Ibrahim Kadunabbi Lubega, looking ahead, the industry shows a highly promising trajectory supported by strong growth across all segments, notably the heightened growth in microinsurance and the sustained performance of the life sector.

Kaddunabbi was speaking on Thursday at the Insurance Tower as he released the insurance industry 2025 half-year performance that showed positive half-year growth in total Gross Written Premium of Sh1.06t compared to Sh933.76b recorded in the similar period in 2024, representing an 8.78% growth in premiums.

“We are happy with the growth, and we attribute this to increased adoption of digital technology along the insurance value chain, which demonstrates proactive efforts to overcome accessibility barriers. Combined with a commitment to financial inclusion, innovative product offerings, and efficient claims management, these factors are driving growth and shaping a positive outlook for Uganda’s insurance industry,” the CEO added.

Performance breakdown

This represents 56.7% of the total premiums collected over the whole year in 2024 which is Sh1.79b. The positive growth reflects increased market activity and continued improvement in levels of confidence within the industry.

Non-Life accounted for 56.38% of the aggregate industry written premiums, maintaining its position as the largest segment.  Life business accounted for 39.65% of the aggregate industry written premiums, showcasing its robust and growing market presence.

Other Categories (HMOs-Dedicated Health Insurer and Micro-insurers) collectively accounted for 3.98% in Q2 2025, compared to 3.61% in Q2 2024.

Meanwhile, Gross Claims paid out during the period totaled Sh442.73b, representing 43.6% of the Sh1.016t in total industry Gross Written Premiums (GWP).

This is as compared to Sh423.8b, which was paid in the half-year period ending June 2024. This highlights the substantial financial impact of claims on the industry and reflects the growing benefits being delivered to policyholders.

During Q2, the industry received a total of 168 complaints from policyholders. Out of these, 150 complaints were successfully resolved within the quarter, reflecting a resolution rate of 89 percent.

The total value at risk associated with the reported complaints was estimated at Sh18b. These figures underscore both the scale of consumer grievances being addressed and the sector’s commitment to timely resolution, while also pointing to the need for continuous improvements in claims management, client communication, and service quality.

Bancassurance generated Sh137.48b in GWP, a 27.93% increase from Sh107.5b in 2024, representing 13.54% of total industry premiums.