Business 16 June 2026 Daily Monitor (Uganda)
Ugandan Insurance Sector Nearly Doubles Premiums But Penetration Remains Under 1%
Despite a near 70% rise in gross written premiums to over Shs2 trillion in five years, insurance penetration in Uganda remains below 1%. The sector's growth is increasingly driven by life insurance, though challenges persist in reaching ordinary Ugandans. Source: https://www.monitor.co.ug/uganda/business/insurance/insurance-premiums-have-doubled-in-five-years-why-does-penetration-remain-stubbornly-low--5498510
Uganda’s insurance industry has experienced significant growth over the past five years, with gross written premiums nearly doubling from approximately Shs1.19 trillion in 2021 to Shs2.02 trillion in 2025. This impressive expansion, averaging 13.1% annual growth in recent years, has also seen the sector attract stronger capital and mature into new segments.
A notable shift within the industry is the rise of life insurance, which has rapidly emerged as the primary growth engine. In 2021, life insurance accounted for about 33.3% of total premiums; by 2025, its share had grown to 48.3%, nearly matching non-life business. This surge is largely attributed to the expansion of individual life policies, savings-linked products, and health-related life business, with companies like Jubilee Life, Prudential, and ICEA Life becoming market leaders in this space.
However, despite this robust premium growth, insurance penetration—the ratio of premiums to GDP—remains stubbornly low, under 1%. A significant portion of the industry’s growth is concentrated among corporate clients and compulsory covers such as motor and fire insurance, which still form the backbone of non-life business. This means that many ordinary Ugandans are yet to embrace insurance as a routine financial product, often encountering it only for transactional compliance needs.
Challenges such as rising claims costs, competition, and a persistent trust deficit, stemming from perceptions of slow claims settlement and a lack of understanding, continue to hinder broader adoption. While microinsurance has shown explosive growth, signaling potential for reaching underserved populations, the overall penetration paradox remains the sector’s most significant hurdle. The industry’s next phase of success may depend on building trust, relevance, and inclusion among the millions of uninsured Ugandans, moving beyond mere premium collection to market deepening.
Source: Daily Monitor (Uganda)