Life insurance - Uganda | Statista Market Forecast

The Life insurance market market in Uganda is expected to reach a projected market size (gross written premium) of US$970.80m in 2024.
The average spending per capita in the Life insurance market market is estimated to be US$19.44 in the same year.
It is anticipated that the gross written premium will experience an annual growth rate (CAGR 2024-2029) of 3.67%, resulting in a market volume of US$1.16bn by 2029.
When comparing globally, the United States is predicted to generate the highest gross written premium of US$1.3tn in 2024.
The life insurance market in Uganda is experiencing a surge in demand fueled by the growing middle class and increasing awareness of the importance of financial protection.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

The Life insurance market in Uganda has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Uganda are increasingly recognizing the importance of life insurance as a means of securing their financial future and protecting their loved ones. With a growing awareness of the benefits of life insurance, more individuals are seeking comprehensive coverage to safeguard against unforeseen events.

Trends in the market: One notable trend in the Ugandan life insurance market is the increasing demand for customized insurance products that cater to specific needs and preferences of customers. Insurers are adapting their offerings to provide more flexibility and tailored solutions to meet the diverse requirements of policyholders. Additionally, there is a rising trend of digitalization in the distribution of life insurance products, making it more accessible and convenient for customers to purchase policies.

Local special circumstances: In Uganda, the relatively low insurance penetration rate presents a significant opportunity for growth in the life insurance sector. As the economy continues to expand and incomes rise, more individuals are looking to invest in long-term financial planning through life insurance. Furthermore, the presence of a young and growing population in Uganda is driving the demand for life insurance products, particularly among the millennial demographic who value financial security.

Underlying macroeconomic factors: The stable economic environment in Uganda, coupled with favorable regulatory policies, is creating a conducive atmosphere for the growth of the life insurance market. As the country experiences sustained economic growth and development, disposable incomes are increasing, leading to a greater capacity for individuals to invest in life insurance. Moreover, the government's efforts to promote financial inclusion and literacy are contributing to the overall expansion of the insurance sector in Uganda.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.