Insurers’ H1 premiums surge 9% to Shs 1trillion
Despite the upbeat numbers, structural weaknesses remain
Kampala, Uganda | Julius Businge | Uganda’s insurance industry recorded a strong performance in the first half of 2025, with Gross Written Premiums (GWP) rising 9 per cent to Shs1.06 trillion compared with Shs933.76 billion in the same period a year earlier, according to data released by the Insurance Regulatory Authority of Uganda (IRA).
The regulator attributed the growth to increased market activity, improving public confidence, and wider access to insurance products.
“These results show that the sector is moving in the right direction,” said Kaddunabbi Ibrahim Lubega, chief executive of the IRA, during a presentation in Kampala on September 4.
Life insurance continued to anchor the market, registering Shs402.71 billion in premiums, a 12.55 per cent increase from Shs357.81 billion in the first half of 2024.
Non-life premiums grew by 5.59 per cent to Shs572.60 billion, while Health Membership Organisations contributed Shs38.28 billion, up 15.76 per cent year-on-year.
The sharpest growth came from microinsurance, which rose 242.7 per cent to Shs2.1 billion, compared with Shs610 million in the second quarter of 2024. Industry experts and IRA officials said the expansion was supported by new regulatory frameworks tailored to microinsurance, the rollout of innovative products, deeper bancassurance partnerships, and wider use of digital platforms. The recent establishment of an association of microinsurance providers has also encouraged uptake, particularly among low-income and informal households.
“Microinsurance is expanding access to vulnerable communities, which is crucial for financial protection and social inclusion,” Kaddunabbi said.
Ugand has 20 non-life insurers, nine life insurers, four micro insurers, two reinsurance companiesone and one Health Membership Organisations.
Rising claims and payouts
The sector also paid out more in claims. Gross claims rose to Shs442.73 billion in the first half of 2025, up from Shs423.8 billion in the same period last year. The increase was welcomed by the regulator as a sign that insurers are meeting obligations.
“The growth in claims is a strong signal that insurance companies are proving their worth by meeting their obligations to clients. It shows that we are doing the right thing in this market,” Kaddunabbi noted.
The number of policyholders also grew strongly, from 405,837 in the second quarter of 2024 to 506,119 a year later, marking a 24.7 per cent rise. Group policies nearly doubled to 103,714, while individual policies rose 14.2 per cent to 402,405. Much of this expansion was again linked to the rapid adoption of microinsurance, underscoring its role in deepening financial inclusion.
The period saw an increase in policyholder complaints, with 168 cases reported. Of these, 150 were resolved, reflecting an 89 per cent resolution rate. While the rise in grievances could be seen as negative, the IRA said it signalled growing awareness of consumer rights.
“These complaints are a good sign; they show that the public is becoming more aware of their rights and that our systems are working,” said Kaddunabbi, speaking through a legal official. “Additionally, these reports guide us in drafting relevant regulations to further protect the sector.”
Life insurance outlook and bancassurance gains
Life insurance now accounts for nearly 40 per cent of total GWP, and the IRA is targeting its contribution to reach 60 per cent in the coming years, with a projected annual growth of three percentage points. To support this goal, the Authority is reviewing educational programmes, building actuarial capacity, and refining claims guidelines.
Bancassurance remains a vital distribution channel. Premiums generated through banks rose 27.93 per cent to Shs137.48 billion, equivalent to 13.54 per cent of total industry premiums. Life products dominated this channel, benefiting from consumer trust in banks and the convenience of combining financial and insurance services.
Despite the upbeat numbers, structural weaknesses remain. Kaddunabbi reiterated the need for consolidation to create stronger players.
“The insurance sector is not for the faint-hearted; it is for the ‘kanyamas’. We need strong players who can withstand market pressures and deliver sustainable growth. This is why IRA supports mergers to create more resilient companies capable of real, lasting transformation,” he said.
Fraud also remains a concern, with four cases reported during the half year amounting to potential losses of Shs449.7 million. The IRA said it is tightening verification systems and strengthening collaborations with other agencies to mitigate fraud.
Positive trajectory
Overall, the IRA painted an optimistic outlook for the sector, citing the expansion of digital distribution channels, growing consumer awareness, and the strong performance of microinsurance and life products.
“We are building an insurance sector that is stronger, more inclusive, and trusted by the public,” Kaddunabbi concluded. “With continued collaboration and innovation, we will unlock even greater value for Ugandans and solidify insurance as a cornerstone of our
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