Insurances

The Insurances market in Uganda is projected to reach a market size (gross written premium) of US$2.02bn in 2024.
Non-Life Insurances dominate the market with a projected market volume of US$1.05bn in 2024.
The average spending per capita in the Insurances market in Uganda amounts to US$40.47 in 2024.
From a global comparison perspective, it is shown that the highest nominal value is reached the United States, with a projected market size of US$3.8tn in 2024.
The gross written premium in Uganda is expected to show an annual growth rate (CAGR 2024-2029) of 3.43%, resulting in a market volume of US$2.39bn by 2029.
In global comparison, the United States will generate the most gross written premium, reaching US$3.8tn in 2024.
Uganda's insurance market is experiencing a surge in demand for health insurance, driven by the increasing awareness of the importance of healthcare coverage among its population.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. 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.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

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, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in Uganda has been experiencing significant growth in recent years.

Customer preferences: Customers in Uganda are increasingly prioritizing insurance products to protect their assets and mitigate risks. This shift in preferences can be attributed to a growing awareness of the importance of insurance coverage in safeguarding against unforeseen events.

Trends in the market: One noticeable trend in the Ugandan insurance market is the rise of microinsurance products tailored to meet the needs of low-income individuals and small businesses. This trend is driven by a push for financial inclusion and efforts to provide affordable insurance options to a broader segment of the population. Additionally, there is a noticeable increase in the uptake of health insurance products as more Ugandans seek to access quality healthcare services without facing financial constraints.

Local special circumstances: The insurance market in Uganda is also influenced by the regulatory environment, with the Insurance Regulatory Authority playing a crucial role in overseeing the industry. Local insurance companies are adapting to regulatory changes and implementing innovative strategies to remain competitive in the market. Moreover, the prevalence of informal insurance arrangements in certain communities poses a challenge to formal insurance providers, requiring tailored approaches to educate and attract customers.

Underlying macroeconomic factors: The growth of the insurance market in Uganda is further supported by favorable macroeconomic conditions, including steady economic growth and increasing disposable incomes. As the country continues to develop, there is a rising demand for insurance products across various sectors such as agriculture, manufacturing, and services. Additionally, advancements in technology are facilitating greater access to insurance services, particularly in rural areas where traditional distribution channels may be limited.

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.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.