Kampala, Uganda – Uganda’s insurance industry has continued its upward trajectory, recording solid growth across multiple segments in the first half of 2025, according to a press statement released by the Insurance Regulatory Authority of Uganda (IRA) at the Insurance Tower in Kampala.
The report shows that the industry’s total Gross Written Premiums (GWP) rose to UGX 1.016 trillion, an 8.78% increase from UGX 933.76 billion recorded during the same period in 2024. This performance represents 56.7% of the total premiums collected in 2024, indicating strong momentum going into the second half of the year.
Speaking during the release of the performance report, IRA Chief Executive Officer, Kaddunabi Lubega, said:
“The first half of 2025 has been marked by resilience, innovation, and expansion. We are seeing a sector that is growing not only in premium volumes but also in depth and outreach. The remarkable growth in microinsurance and continued strength in the life and non-life segments indicate increasing public confidence and relevance of insurance to our people.”
Key Performance Highlights
- Life insurance premiums grew by 12.55% to UGX 402.71 billion, while non-life premiums grew by 5.59% to UGX 572.60 billion.
- Health Membership Organisations (HMOs) recorded UGX 38.28 billion, a 15.76% increase, reflecting heightened demand for medical insurance.
- Microinsurance posted exceptional growth of 242.7%, reaching UGX 2.1 billion, the fastest in the industry.
“This exponential rise in microinsurance uptake speaks volumes about the changing insurance landscape and our continued efforts toward financial inclusion,” Mr. Lubega added.
Distribution Channel Insights
- Bancassurance grew by nearly 28%, collecting UGX 137.48 billion, and now contributes 13.54% of total industry premiums. It played a particularly strong role in life insurance, accounting for 26.51% of total life premiums.
- Insurance brokers collected UGX 257.77 billion, while reinsurance brokers added UGX 25.6 billion, together accounting for almost 30% of the industry’s total GWP.
- Loss assessors and adjusters handled 1,923 claims, generating UGX 4.9 billion in fees, emphasizing their importance in enhancing transparency and fairness in claims management.
Insurance Coverage Expansion
The number of insured individuals increased significantly by 24.7%, from 405,837 in Q2 2024 to 506,119 in Q2 2025. Individual policyholders rose by 14.2%, while group policies nearly doubled, a 94% jump attributed to greater employer and institutional uptake.
“The surge in group-based schemes underscores the sector’s growing relevance in formal risk-sharing structures such as employee benefits and organizational welfare programs,” noted Mr. Lubega.
Claims and Complaints
The industry paid out UGX 442.73 billion in claims, compared to UGX 423.8 billion last year. This represents 43.6% of total premiums collected, a testament to insurers’ commitment to honoring obligations.
Additionally, 168 consumer complaints were received, with 89% resolved within the quarter. The value at risk tied to these complaints stood at UGX 18 billion.
Fraud Monitoring and Prevention
Four fraud cases were under investigation in Q2 2025, with total value at risk estimated at UGX 449.7 million. These involved both life and motor insurance, highlighting ongoing risks in documentation and underwriting.
“While the number of reported fraud cases remains low, the financial exposure is not. We must continue tightening our verification processes and promoting industry-wide integrity,” Mr. Lubega emphasized.
Outlook: Expanding Access and Innovation
Despite the positive results, IRA acknowledges that a large portion of the population—especially in rural and informal sectors—remains uninsured.
“We must bridge this gap through digital solutions, inclusive products, and better consumer education,” Lubega stated. “The future of Uganda’s insurance sector is bright, and we remain committed to a regulatory environment that supports innovation, stability, and public trust.”
