Innovation, the pillar of insurance growth

The insurance penetration rate in Uganda is the lowest in East Africa. With 0.65%, this rate is well below that of neighboring countries: 2.3% in Rwanda, 3.2% in Kenya and 2.2% in Tanzania. Ugandan insurers are now more optimist about the sector’s growth potential. The recent introduction of innovative distribution techniques (internet) and the new products launched by foreign insurers are likely to strengthen this business.
The authorities, on their part, are about to ban insurers from covering risks abroad as long as local capacities have not been exhausted. The authorities' intention is to limit premium outflow which is estimated at around 40% of total premiums. A large portion of the cessions abroad pertains to reinsurance placement.