Business 11 May 2026 Daily Monitor (Uganda)
Ugandan Insurers Lean on Agents to Combat Poor Policy Retention
Ugandan insurance companies are increasingly relying on their agents to address the critical issue of low policy persistency, where clients frequently cancel their policies prematurely. This trend poses a significant threat to the long-term stability of the insurance sector. Source: https://www.monitor.co.ug/uganda/business/insurance/insurers-tap-agents-to-reverse-declining-policy-persistency-5454962
The Ugandan insurance industry is facing a significant challenge with declining policy persistency rates, prompting companies to re-evaluate their strategies and place more emphasis on the role of insurance agents. Persistency, in insurance terms, refers to a policyholder’s commitment to continue paying premiums throughout the policy’s term, securing their intended financial protection.
Low persistency rates, where a substantial number of clients abandon their policies before their expiry, are a major concern for the financial health and sustainability of insurance businesses in the country. Eugine Mutekhele, acting CEO, described the situation as “food for thought for all of us,” highlighting its gravity.
While acknowledging that some individual agents achieve impressive persistency rates, with two recognized for their excellent performance, the overall company figures remain a cause for alarm. Mutekhele noted that “about 53 percent of clients who buy policies fall off within the first 24 months,” a figure he deemed “worrying.”
Industry experts point to a combination of external and internal factors contributing to this issue. Linas T. Batya, chief agency officer at Jubilee Insurance, cited clients’ financial struggles, job losses, or business downturns as common reasons for policy cancellations. He also emphasized the importance of agents providing comprehensive information and correct advice to clients, suggesting internal training and awareness are crucial.
To incentivize better performance, Jubilee Insurance, following the merger of its Health and Life businesses, recently held an event to honor its top-performing agents with rewards. The ongoing importance of agents in the sector is underscored by the Insurance Regulatory Authority’s data, which shows that agents were responsible for 60 percent of the industry’s total premium collections, amounting to Shs1.7 trillion last year.
Source: Daily Monitor (Uganda)