Insurance Regulatory Authority of Uganda Regulatory I Authority Annual Insurance Market Report 2019 of Uganda

2019 ANNUAL INSURANCE MARKET REPORT To create an enabling regulatory environment for sustainable growth of the insurance industry while upholding the international best practices. Insurance Insurance Regulatory Authority of Uganda Regulatory i Authority Annual Insurance Market Report 2019 of Uganda Insurance Regulatory Authority of Uganda LOGO SPECIFICATIONS Strategic Overview of IRA Nov. 2019 Our Business Who we Are We are the Insurance Regulatory Authority of Uganda whose establishment was a consequence of Government’s adoption of the Liberalization policy which ended its role of directly engaging in the provision of goods and services and taking on the role of Supervision and Regulation. The Authority is the Supervisor and Regulator of the insurance industry in Uganda. It was established under the repealed Insurance Act, (Cap 213) Laws of Uganda, 2000 (as amended) and continued in existence by the Insurance Act 2017 with the main objective of “ensuring Effective Administration, Supervision, Regulation and Control of the business of insurance in Uganda”. In addition to maintaining the safety and sound operation of insurance players, protecting the interests of insureds and insurance beneficiaries and ensuring the supply of high quality and transparent insurance services and products, the Authority commits significant efforts and resources to facilitating the development of the insurance market. Our Mission To create an enabling regulatory environment for sustainable growth of the insurance industry while upholding best practices. Our Vision A Model Regulator of a developed and secure insurance industry Our Values The Insurance Regulatory Authority has three core values, namely: I) Integrity - We model ethical behaviour by conducting all matters of business with integrity. II) Innovation - We inspire creativity. III) Resilience – We adapt to the rapidly changing environment. Insurance Regulatory Insurance Regulatory Authority of Uganda Authority ii of Uganda Annual Insurance Market Report 2019 Insurance Regulatory Authority of Uganda LOGO SPECIFICATIONS IRA Board Members Nov. 2019 Dr. Isaac Nkote Nabeta Ms. Grace Bakunda Board Chairman Deputy Board Chairperson Mr. Moses Kaggwa Mr. Evarist Ahimbisibwe Hon. Nusura Tiperu Member Member Member Dr. Charles A Abuka Mr. Keith Kalyegira Mr. James Muwawu Mr. Martin Nsubuga Member Member Member Member Alhaj Kaddunabbi Ibrahim Lubega Chief Executive Officer Insurance Insurance Regulatory Authority of Uganda Regulatory iii Authority Annual Insurance Market Report 2019 of Uganda Insurance Regulatory Authority of Uganda Top ManagementLOGO SPECIFICATIONS Nov. 2019 Alhaj Kaddunabbi Ibrahim Lubega Chief Executive Officer Ms. Racheal Kabala Mr. Protazio Sande Mr.Benard Obel Mrs.Florence Nviri Kel Ag. Director Legal Director Planning, Director Supervision Director Finance Secretary to the Authority Research and Market Development Muganyizi Harunah Mpala Robert Asiimwe David Ms. Mariam Nalunkuuma Head Human Capital Head Procurement Head Internal Audit Head Communications & Administration Success is the natural consequence of consistently applying basic fundamentals” Insurance Insurance Regulatory Authority of Uganda Regulatory v Authority Annual Insurance Market Report 2019 of Uganda Insurance Regulatory Authority of Uganda LOGO SPECIFICATIONS Board Chairman’s Statement Nov. 2019 “Success is neither magical nor mysterious. Success is the natural consequence of c o n s i s t e n t l y a p p l y i n g b a s i c f u n d a m e n t a l s ” Jim Rohn, American Entrepreneur & Author. am delighted to present my fourth insurance business generated UShs 276.32billion performance market report for the Insurance in GWP (up from UShs 217.97billion in 2018) representing a 26.77pecentage growth in premiums. Industry as Chairman Board of the Insurance Regulatory Authority of Uganda. The year Health Membership Organisations, the Mono- I class Medical Insurance providers, generated UShs 2019 was yet another year of sustained success as 76.11billion in 2019 up from UShs 69.11billion the sector registered a 13.32percent growth in in 2018 representing an 10.13percentage growth aggregate Gross Written Premiums. in premiums while the dedicated Microinsurance Specialist Company generated UShs 0.299billion Borrowing from the insights of Jim Rohn, this success in premiums up from UShs 24million realized in is indeed neither magical nor mysterious. It is a 2018 (their first year of operation) representing a consequence of consistent concerted actions of the phenomenal growth of 1,131percent in premiums. various stakeholders to whom I pay tribute. The impressive growth performance is, among As Board, we take cognizance of the fact that good other things, attributed to the strong Economic Corporate Governance is a critical foundation for Fundamentals that have maintained Inflation below the Authority to deliver our oversight role and for 5percent, resulting into strong growth in 2019, Management to effectively perform its statutory estimated at 6.3percent, largely driven by the functions including Legal, Supervisory, Regulatory, expansion of services (Averaging 7.6percent) and and Market Development mandates. Our Corporate industrial growth driven by construction and mining Governance framework is built around a well-defined averaging 6.2percent). Additionally, enhanced management structure and roles, comprehensive distribution channels such as Bancassurance operational and financial control procedures and brought in UShs 53.6billion which accounted for high standards of conduct aimed at delivering 5.5percent of the total GWP; Sustained growth in a transparent and accountable supervisory and uptake of medical insurance class of business mainly regulatory regime. by Corporate Institutions which contributed UShs 220billion in 2019 (Accounting for 22.6percent of In our context, these are indeed the basic the total GWP); and Sustained growth in Agriculture fundamentals that Jim Rohn refers to in his wisdom- Insurance contributing UShs 12.7billion in GWP. loaded assertion above. The same fundamentals have been a focus of supervisory and regulatory In assessing sector performance, financial strength action and that accounts for the success as reflected and capability is critical because this determines in the performance figures. In the year 2019, Gross how much protection they can provide in form Written premiums for the Industry increased from of risk absorption. In the year under review, the UShs 859.9billion in 2018 to UShs 974.42bn in Insurance companies’ (including HMOs) (i.e. Assets 2019 (against our projection of UShs 950bn for less Liabilities) increased by 11.23percent from UShs the year), posting 13.32percent growth. Non-life 508.2billion in 2018 to UShs 565.2billion in 2019. business generated UShs 621.69billion in GWP (up from UShs 572.79billion in 2018) representing The narrative above remains incomplete if the an 8.54percentage growth in premiums1 while Life insuring public is not brought into the equation. In fact, insurance customers do not really buy an 1. The Non-life gross premiums for 2018 were restated to include foreign business from Uganda Re Insurance Regulatory Insurance Regulatory Authority of Uganda Authority vi of Uganda Annual Insurance Market Report 2019 Insurance Regulatory Authority of Uganda LOGO SPECIFICATIONS insurance policy – they buy the confidence that their There is more to do in 2020 to claim the success claim will be settled when they make it. The policy is that we have celebrated in 2019. The start of 2020 not really any protection but a quality claims process has not been a good one with the outbreak of that can return the customer to the situation they COVID-19 pandemic that has challenged most of were in before an event, quickly and painlessly. So the fundamentals. Nevertheless, the sector must muchNov. 2019 effort has been made to streamline claims continue implementing remediation efforts through, processes whilst paying attention to possible fraud. In among other things, strengthening digital capabilities this regard, it is impressive to note that Gross Claims and investing in IT platforms to support growth. paid for both life and Non-life (including HMOs) Entities should focus more on effective governance, increased by 14.75percent from UShs 326.7billion sound risk management and ensuring a robust in 2018 to UShs 374.9billion in 2019. control environment. The world is changing, and our ability to change with it will shape our future success. As board, we have superintended over management Only the focused, agile and resilient business models to ensure that all issues that are likely to impair will deliver in these changed times. As Board, we the players ability to honor their obligations to the shall substantiate our efforts towards enhancing insuring public are given due attention. Indeed, we our seamless engagement with stakeholders and have been keen to review reports on the operations the market, fostering close link with fellow regulators of the Insurance Fraud Investigations Unit and the locally and globally in order to address the emerging Complaints Bureau with a view of providing regular threats in the global arena. guidance. Otherwise, the claims performance figures, as well as the structures we have put in place The current environment has made the future to ensure ‘adequate hygiene’, should give assurance highly uncertain, but I am motivated by the fact to the insuring public of the readiness and capability that with the rethought business models, re- of the

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