By Ben Musanje
Uganda’s insurance industry has raised fresh concern over the country’s extremely low uptake of insurance, pointing to lack of public awareness as the biggest obstacle preventing millions from securing financial protection.
Industry estimates show that only about 1% of Ugandans—fewer than 600,000 people in a population of more than 45 million—have formal insurance cover, making the country one of the least insured markets in the region. Overall insurance penetration is also estimated at below 1% of GDP, while broader assessments that include employer-based and informal arrangements suggest coverage may still be only around 4–5%, leaving the vast majority of citizens exposed to financial shocks.
Speaking during a media activation ahead of the 8th Annual Conference of the Insurance Brokers Association of Uganda (IBAU) 2026, Paul Muhame, Chairman of the Insurance Brokers Association of Uganda (IBAU), said many Ugandans still do not understand how insurance works or why it is important in their daily lives.
“Awareness is our biggest challenge,” Muhame said, stressing that the industry must invest more effort in educating the public about the value of insurance, especially during times of loss.
He explained that insurance brokers play a central role in the system by linking clients to insurance companies and ensuring that customers are treated fairly. According to Muhame, brokers help simplify policies, promote transparency, and ensure claims are processed quickly.
“We ensure the customer is at the center of attention and that when claims arise, they are handled as efficiently as possible,” he said.
Muhame further highlighted the two major categories of insurance, life and non-life, explaining that life insurance products are particularly important for long-term savings and financial security, while non-life insurance covers risks such as accidents, property damage, and liabilities.
The industry is now banking on technology to close the gap. Muhame noted that digital platforms are making it easier to reach more Ugandans, allowing them to access insurance services through mobile phones and online platforms.
“Technology helps us reach people we would not normally access and also improves efficiency, making the process faster, more transparent, and reliable,” he said.
Also speaking at the event held at Kiswa Primary School in Bugoloobi, Edward Nambafu, Chairperson Conference Convener, said this year’s conference will focus heavily on rebuilding trust and expanding coverage beyond corporate clients to ordinary Ugandans and small businesses.
“We are speaking to the 99 percent who are not insured,” Nambafu said. “These are individuals and small businesses who need protection the most, and we must find ways to reach them.”
He revealed that the conference, scheduled for April 22 to 24 in Mbarara, will attract over 300 delegates from across East Africa and beyond, making it one of the largest gatherings in the sector.
Al hajji Ibrahim Kadunabbi Lubega, CEO Insurance Regulatory Authority (IRA) Uganda is expected to be the Chief Guest and Prof Augustus Nuwagaba, Deputy Governor Bank of Uganda as the keynote Speaker.
Nambafu emphasized that the theme, “Trust Re-imagined, Delivering on the Promise,” reflects the industry’s commitment to ensuring that clients actually receive compensation when losses occur.
Adding to the discussion, Joseph Nsubuga, Chief Executive Officer of Mirai General Insurance (U) Limited, said collaboration between insurers and brokers is key to increasing insurance penetration in Uganda.
“We cannot grow alone,” Nsubuga said. “Brokers are the custodians of trust and help bridge the gap between the promises insurers make and the peace of mind clients expect.”
He noted that companies like Mirai are working to improve claim settlement timelines, with some claims now being processed within 24 hours.
From the regional perspective, Daniel Kairu, Representing of ICEA Group, reaffirmed the importance of partnerships in transforming the industry. He said ICEA has committed significant resources, including sponsorship support worth 100mshs towards this year’s conference, and strengthening collaboration with brokers.
“Insurance is built on trust. Clients must believe that when something goes wrong, they will not stand alone,” Kairu said.
The industry also used the platform to demonstrate its social responsibility by donating scholastic materials worth Shs10 million to Kiswa Primary School, highlighting the importance of early education and awareness.
Leaders say such outreach efforts are part of a broader strategy to change public perception and build long-term trust in insurance services.
Despite past concerns about delayed or denied claims, stakeholders insist that reforms and regulatory oversight have significantly improved the sector, ensuring that valid claims are now honored more consistently.
However, they warn that unless awareness improves, Uganda will remain stuck at low insurance penetration levels, leaving millions vulnerable to unexpected financial shocks.
With renewed energy, industry players say they are now determined to take the message directly to the public — not just in boardrooms, but in communities, schools, and streets — in a bid to turn awareness into action. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
