- Overall, the industry continued to grow favorably
- Non-life business generated UShs 510.1 billion
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The CEO Kaddunabi Lubega said as at the end of June 2023, 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.
Life insurance business on the other hand 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.
Microinsurance business generated UShs 462.63million growing from UShs 117.51million in Q1, 2023.
Overall, the industry continued to grow favorably, increasing from UShs 711.6billion in Q2 2022 to UShs 828.9billion in Q2 2023, representing a 16.5% increase during the reporting period.
The report shows that Health medical organization-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.
When compared with the corresponding period in 2022 where UShs 22billion was underwritten, the current performance represents a 24.1% growth.
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%.
Overall, the industry continued to grow favorably, increasing from UShs 711.6billion in Q2 2022 to UShs 828.9billion in Q2 2023, representing a 16.5% increase during the reporting period.
Speaking to Journalists at insurance tower in Kampala, Kaddunabi noted that 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.
Commenting on Claims Payouts, Kaddunabi noted that the 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.
He noted that thier core mandate as an Authority is to ensure that this promise is fulfilled.
He said that 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". He added.
Further the report showed that as at end June, 2023, the gross written premium collected through the brokerage distribution channel was UShs 257.8billion up from UShs 133.6billion in Q1, 2023. The current performance accounts for 31.1% of the total insurance premium underwritten during the period.
Kaddunabi said that this explains how insurance Brokers have remain critical players in the market as they play a critical role in providing expert, value-adding advice on Risk Management to their clients.
"We shall continue to implore brokers to sell their value propositions to the consuming public so as to increase their share". He noted
On the side of Bancassurance, the performance report showed that during the quarter ended June, 2023, the gross written premium collected through the Bancassurance distribution channel was UShs 83.6billion compared to UShs 62.1billion in Q2, 2022 representing a 34.5% growth and an overall contribution of 10.1% to total industry premium in Q2, 2023.