Insurance is one of the most misunderstood financial services in Uganda. Many people associate it with compulsory motor cover, complicated paperwork, or claims disputes. Yet insurance is fundamentally simple. It is a financial safety net that helps individuals, families, and businesses recover from unexpected losses.
Whether it is a medical emergency, a road accident, a fire, theft, flooding, or a business interruption, risk is part of everyday life. The question is not whether these events will happen, but whether we are financially prepared when they do.
At its core, insurance works on the principle of risk pooling. Thousands of people and businesses contribute relatively small amounts of money, known as premiums, into a common fund. When one of them suffers a covered loss, compensation is paid from that fund. In simple terms, many contribute so that those affected by misfortune are protected from devastating financial consequences.
Josephine N. Kasekende, General Manager, MIC Global Risks Insurance Brokers (Uganda) Limited
A few basic insurance terms are worth understanding. A policy is the contract between the insurer and the customer. A premium is the amount paid for insurance cover. A claim is a request for compensation after a loss occurs. The sum insured is the maximum amount payable under a policy, while an excess or deductible is the portion of a loss that the policyholder bears before insurance coverage takes effect.
Uganda’s insurance industry has made significant progress over the years. According to the Insurance Regulatory Authority (IRA), gross written premiums increased from UGX 1.60 trillion in 2023 to UGX 1.76 trillion in 2024, representing growth of 10 percent. Life insurance premiums grew by nearly 15 percent to UGX 702 billion, while health insurance recorded growth of almost 24 percent. The fastest-growing segment was microinsurance, which expanded by more than 131 percent, reflecting increasing demand for affordable protection among low-income households.
Perhaps the most telling statistic is what happens when losses occur. In 2024, insurers paid out UGX 887 billion in claims, more than half of all premiums collected during the year. These payments helped families pay medical bills, replace damaged property, recover from accidents, and keep businesses operating after unexpected setbacks.
Yet despite this progress, insurance penetration in Uganda remains low. Insurance premiums account for only about 0.87 percent of the country’s Gross Domestic Product (GDP), compared to a global average of more than 5 percent. This means that many households and businesses remain financially exposed to risks that could significantly disrupt their lives.
In my role at MIC Global Risks Insurance Brokers (Uganda) Limited, I have witnessed firsthand how insurance transforms outcomes during moments of crisis. We work closely with employers, executives, and families across East Africa, and one reality remains consistent: a health emergency rarely arrives at a convenient time. The difference between financial stability and financial distress often comes down to whether adequate medical cover was in place before the crisis occurred.
I have also seen how insurance delivers value long before a claim is made. One client preparing for international travel with his family sought guidance on travel insurance, emergency medical cover, in a bid to better understand which policy would best serve them. By securing the right protection before departure, his family travelled with confidence, knowing they would have access to quality healthcare wherever they were. Their feedback was simple but powerful: the tailored advice and support made navigating healthcare and insurance significantly more manageable and reassuring. That peace of mind is one of insurance’s greatest benefits.
For individuals and businesses alike, insurance protects against events that can quickly become financially devastating. It safeguards health, income, property, investments, and business continuity. Beyond this, it encourages entrepreneurship, supports access to credit, and mobilises long-term capital that contributes to economic development.
Encouragingly, insurance uptake is gradually improving. According to the Insurance Regulatory Authority of Uganda (IRA), more than 800,000 policies were issued in Uganda during 2024, with individuals accounting for the vast majority of policyholders. This suggests that insurance is increasingly being recognised as a personal financial planning tool rather than merely a regulatory requirement.
Nevertheless, misconceptions persist. Many people view insurance as an unnecessary expense because they have never experienced a major loss. Others only appreciate its value after a crisis occurs. Yet insurance is not designed to make people wealthy. Its purpose is to prevent a financial setback from becoming a financial catastrophe.
As East Africa continues to grow, more individuals are building businesses, acquiring assets, creating jobs, and investing in their families’ futures. Yet wealth creation and wealth protection must go hand in hand. The greatest threat to financial progress is often not a lack of opportunity, but a lack of preparedness for life’s unexpected events.
In our markets, resilience has always been one of our greatest strengths. Insurance is simply resilience made practical. It allows families to protect their dreams, businesses to safeguard their growth, and leaders to focus on building for the future with confidence. The strongest financial plans are not measured by what we accumulate, but by how well we protect what matters most when uncertainty inevitably arrives.
Editor’s Note:Ms. Josephine N. Kasekende, is General Manager, MIC Global Risks Insurance Brokers (Uganda) Limited
About MIC Global Risks Insurance Brokers (Uganda) Limited
MIC Global Risks Insurance Brokers (Uganda) Limited is a leading insurance brokerage and risk management firm providing tailored insurance, employee benefits, health insurance, life assurance, and risk advisory solutions to businesses and individuals across Uganda. The company combines local expertise with international partnerships to deliver innovative and client-focused risk solutions. Working with leading insurers, MIC Global Risks helps clients protect their assets, people, and operations through comprehensive insurance programmes, risk management support, and claims advisory services designed to enhance resilience and long-term success.
