KAMPALA, September 23, 2024 – The insurance sector in Uganda has been urged to adopt technology in their operations, especially in the face of the highly changing technological advancement.
During the CEOs’ Breakfast Meeting organised by the Insurance Regulatory Authority of Uganda [IRA] in Kampala days ago, Chief Executive Officer Ibrahim Lubega Kaddunabbi reiterated that the insurance sector in the country ought to leverage technological advancement which would highly determine their success in the current competitive industry.
“Today, the world of business is highly dependent on technology, but the players especially in this sector have been reluctant to adapt to the new technology demands,” Lubega said.
He added that the players in the sector need to come close to the customers in different ways, especially at the product development stages.
“Insurers must engage with consumers before developing products. It’s critical to be intentional and use technology that speaks to the needs of the people,” Lubega said.
He reiterated that the future of the insurance industry depends on the ability to adapt to technology.
The keynote speaker at the Breakfast Meeting held at Kampala Serena Hotel in Kampala, Michael Niyetegeka, the Executive Director Refactory Limited remarked that insurance players need to appreciate and critically understand customers’ attributes to enable them to drive growth in the sector.
“To grow the industry, insurers must understand each customer’s characteristics and tailor solutions accordingly. Customers are looking for convenience, and insurers who can provide that will win their loyalty,” Niyitegeka said.
He added that insurers should shift from providing generic services, but start innovations and designing solutions that align to customer preferences and circumstances that determine their lives.
“Look at the need to create value around your products. Today customers spend more time online, but is your company one of those they consider during that time? If your products don’t have a digital distribution channel, you will struggle to stay competitive,” he said, adding that over 70 percent of Uganda’s population is under 30 and increasingly reliant on digital devices for services.
In 2022, Uganda’s insurance sector, which boasts over 20 companies, recorded a year of strong growth up to 20.4 percent, higher than figures recorded at 10.6 percent in 2021.
Available figures from the IRA also indicate that gross written premium [GWP] grew from Shs 1.183 trillion in 2021 to Shs. 1.42 trillion in 2022.
Lubega noted that the IRA looks forward to more sectoral development, especially in enhanced risk awareness, marine insurance, medical insurance, and other emerging sector opportunities in oil and gas.
The Authority also looks at the growth in premiums from agriculture insurance and getting incorporated in the Parish Development Model [PDM].
https://thecooperator.news/cooperatives-shun-joining-agricultural-insurance/
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