finance 4 August 2026 Daily Monitor (Uganda)
Uganda's Insurance Sector Sees Significant Growth Driven by Shifting Perceptions and Innovation
Uganda's insurance market is experiencing a notable expansion, with life insurance rapidly closing the gap with non-life cover. This growth is fueled by increased financial awareness, innovative products, and a growing trust in insurers' ability to honour claims. Source: https://www.monitor.co.ug/uganda/news/national/why-insurance-uptake-is-expanding-5547260
For years, insurance in Uganda was seen primarily as a legal obligation rather than a crucial financial tool. Compulsory third-party motor insurance and fire insurance for property were the most common, with little uptake beyond these requirements.
However, this perception is undergoing a significant transformation. A combination of increased financial literacy, the introduction of innovative and accessible insurance products, stronger partnerships with financial institutions, and a growing confidence in insurers’ claims settlement processes are driving more Ugandans to seek insurance. People are now looking to protect not just their assets, but also their income, health, and families.
Recent data from the Insurance Regulatory Authority of Uganda (IRA) highlights this dynamic shift. In 2025, the industry’s gross written premiums rose by 14.72 percent to Shs2.024 trillion from Shs1.764 trillion the previous year. The most striking change is in life insurance, which saw premiums surge by 39.21 percent to Shs977.6 billion, capturing 48.31 percent of the market share – nearly matching non-life insurance.
This growth is attributed to a maturing market that increasingly recognizes insurance as a vital component of financial planning. Factors such as economic growth improving disposable incomes, coupled with recent experiences like the Covid-19 pandemic and rising healthcare costs, have heightened awareness of financial risks. Insurers are responding with a wider array of products, including affordable funeral plans, education savings, and health cover tailored for middle-income earners and young professionals.
Furthermore, improved claims payment records are building public trust. Insurers paid out Shs934.55 billion in claims in 2025, reinforcing insurance’s role as a financial safety net. Bancassurance partnerships have also been instrumental, with premiums generated through banks increasing by 34.33 percent.
Even microinsurance, designed for low-income earners and the informal sector, has seen remarkable growth, with premiums skyrocketing by 347.86 percent. The IRA anticipates this growth momentum to continue, projecting industry premiums to rise by over 10 percent in 2026, supported by economic stability and increased public investment.
Source: Daily Monitor (Uganda)