Insurance in Uganda records 12pc growth
Uganda’s insurance industry registered a 12 per cent growth in the first half of 2017 compared with the same period in 2016.
Increased acquisition of agriculture, life, bonds, public liability and engineering insurance products contributed to the growth in gross premiums from Ush321 billion ($86.9 million) by June 2016, to Ush360 billion ($97.5 billion) in the first half of 2017.
This promises a much better year than 2016 when growth was just 3.6 per cent. The slow growth in 2016 has been partly blamed on the election that year with its related uncertainties — ironic given that uncertainty should ordinarily be a boon for insurers.
Other factors were problems experienced by some of Uganda’s trading partners China and South Sudan, as well as a reduction in remittances from Ugandans living abroad.
But Deepak Pandey, the Uganda Insurance Association (UIA) chairman, said the industry is recovering. He nevertheless cited steep taxation as hampering quicker and stronger growth.