Afrinsurance Magazine

44 Conference th

& Annual General Assembly

African Insurance Organisation

AfrInsurance Magazine

Furthering the Financial Inclusion Agenda of African Nations through Insurance May 21st - 24th, 2017, Speke Resort Munyonyo, Kampala - Uganda

Insurance Industry has much room for growth

Mass market appeal to spur insurance penetration

Uganda’s top 8 must-visit tourist attractions

African Insurance Organisation

Your

aspirations

Our

commitment

A more

resilient Africa

How can we support our communities to become more resilient and achieve sustainable growth?

At Swiss Re we believe in long-term commitment and in forging enduring relationships with our clients and partners. By working closely together, we can combine your local knowledge and capabilities with our international expertise and insights, to develop tailored solutions that meet the needs of local communities. Let’s open our minds to new and exciting solutions that will benefit not only our generation, but – most importantly – generations to come. We’re smarter together.

b swissre.com

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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WE’RE COMMITTED TO TRUSTED PAN-AFRICAN RELATIONSHIPS.

Developing products and services that answer Africa’s needs.

We believe our responsive service culture is the key to developing trust, solid relationships and relevant offerings in local markets. We do this all across the continent, and our regional offices act as centres of specialist expertise.

Engineering, Oil and Gas, Enterprise Risk Management – if it helps Africa, we’re committed to delivering the perfect product.

www.continental-re.com Pan-African commitment made local

Lagos | Douala | Nairobi | Abidjan | Tunis | Gaborone

Contents 11 | Guidelines for Delegates

Programme 13 | 44TH AIO Conference & General Assembly 14 | 44Ème Conference Et Assemblee Generale De L’oaa 15 | Conference Speakers 16 | AIO Member States

Features 18 |Insurance industry has much room for growth

48 | Pictorial: 43rd Conference & Annual General Assembly in Morocco

20 | At par with international best practice

50 | Ensuring Insurance Success

24 | ‘The Africa We Want’

53 | State of insurance in Africa

27 | Mass Market Appeal

55 | Developments in Uganda’s insurance industry

33 | Uganda Insurance Industry: Key facts and figures

57 | Uganda’s top 8 Must-visit Tourist Destinations

39 | The Agro-Insurance Consortium: Answer to Sustainable Agriculture

59 | Entertainment

42 |Deepening Financial Inclusion

60 | AIO Local Organising Committee

45 | The case for a Harmonised Laws, Regulations

61 | Appreciation

Consulting Editor: Peter Nyanzi Design/Layout: Peter Mugeni

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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African Insurance Organisation

Statement from Uganda’s Prime Minister Welcome to Uganda, The Pearl of Africa. I am delighted to welcome the delegates of the 44th conference of the African Insurance Organization.

T

his is indeed the fulfillment of a commitment registered in 1998 for which we have been eagerly waiting.

The choice of our country as the venue of the conference is a statement of approval of the numerous strides in our local insurance industry, building on the experiences shared about 20 years ago.

The Insurance Sector in Uganda, as

a mobilizer of funds, is an ally of Government in the poverty alleviation and wealth creation programs, which we consider critical for economic development.

ery to support the programs as set out by your organization. I invite you to take off time after the conference to experience the numerous sights and sounds Uganda has to offer.

This conference is again another opportunity to leverage on the expertise to enhance the skills and knowledge required to advance our mission.

Karibu and welcome!

I therefore welcome you with assurance of effective Government machin-

Hon. Ruhakana Rugunda (Dr), Prime Minister, Republic of Uganda

East African Community Anthem

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Chorus Jumuiya Yetu sote tuilinde Tuwajibike tuimarike Umoja wetu ni nguzo yetu Idumu Jumuiya yetu.

2. Uzalendo pia mshikamano Viwe msingi wa Umoja wetu Natulinde Uhuru na Amani Mila zetu na desturi zetu.

1. Ee Mungu twaomba ulinde Jumuiya Afrika Mashariki Tuwezeshe kuishi kwa amani Tutimize na malengo yetu.

3. Viwandani na hata mashambani Tufanye kazi sote kwa makini Tujitoe kwa hali na mali Tuijenge Jumuiya bora.

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

Statement from Minister of Finance, Planning & Economic Development I salute the African Insurance Fraternity on the occasion of the 44th Annual Conference of the African Insurance Organization being hosted in our motherland, Uganda.

Please accept my humble hearty welcome to you as partners in the struggle to advance the cause of Insurance in Africa and count on us for the policy framework and infrastructure to ensure a successful conference and a pleasant stay in the pearl of Africa.

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he Ministry of Finance, as the overseer of the Insurance Industry, shares the joys of the occasion through the patronage provided to the Industry Regulatory Authority, as the local organizers.

Please accept my humble hearty welcome to you as partners in the struggle to advance the cause of Insurance in Africa and count on us for the policy framework and infrastructure to ensure a successful conference and a pleasant stay in the Pearl of Africa.

I also invite as many of the delegates as possible to stay behind for an extra few days after the conference to discover and enjoy the many beautiful scenes of the country.

WELCOME Hon. Matia Kasaija(MP) Minister of Finance, Planning and Economic Development

Uganda National Anthem 1. Oh Uganda!

May God uphold Thee We lay our future in thy hand United, free, for liberty Together we'll always stand.

2. Oh Uganda!

The land of Freedom Our love and labor we give And with neighbors' all AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

At our Country's call In peace and friendship, we'll live.

3. Oh Uganda!

The land that Feeds us By sun and fertile soil grown For our own dear land We'll always stand The Pearl of Africa's Crown.

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African Insurance Organisation

Company Profile 2017 8

Your Risk Partner

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

Welcome Message from the Vice President, AIO On behalf of the Insurance fraternity in Uganda, I take this opportunity to welcome all the delegates from the African continent and beyond to this 44th African Insurance Organization Conference and General Assembly to Uganda, the Pearl of Africa.

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he President of the Republic of Uganda, His Excellency Gen. Yoweri Kaguta Museveni, is an ardent believer in Pan Africanism and thus we follow in his footsteps.

The Insurance Regulatory Authority of Uganda (IRA) is grateful to the African Insurance Organization for giving Uganda an opportunity to host this important and historic event. We thank the Almighty for bringing us this far.

The theme of the conference, “Furthering the financial inclusion agenda of African Nations through insurance,” places insurance professionals at the centre of Africa’s development and emphasizes financial inclusion, which makes a significant positive difference in the lives of vulnerable individuals especially by helping them mitigate shocks and improve the management of their expenses.

As insurance professionals, we have a central role in safeguarding businesses so as to transform development in our economies. Therefore, all policy-

makers should embrace insurance for sustainable development.

The conference program is well balanced - bringing together excellent and knowledgeable speakers - to deliberate on pertinent issues affecting us all. We hope this will also promote and strengthen collaborations among Insurers and other players in the insurance industry.

Uganda is the Pearl of Africa, gifted by nature with warm hearted people. Please spare some time and visit the many tourism attractions in the country.

I wish you a pleasant conference concentrating on transforming Africa’s economies.

Alhaj Kaddunabi Ibrahim Lubega, Chief Executive Officer, Insurance Regulatory Authority of Uganda and Chairman- AIO Local Organizing Committee

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

The first conference was held at a time when the industry regulator was just one year old, then known as the Uganda Insurance Commission (UIC). The issue of effective legislation was discussed and as such we had the capacity to grow from a mere commission as it was to a fully-fledged Authority now.

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African Insurance Organisation

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AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

Guidelines for Delegates Welcome to the Pearl of Africa!

We are so delighted that you have joined us for the 44th AIO Conference here in Uganda, the Pearl of Africa. Uganda is a beautiful country located in Eastern Africa bordering the countries of DR Congo, Kenya, Rwanda, South Sudan and Tanzania. The terrain is mostly plateau with a rim of mountains. Uganda sits on the Equator and day light is nearly always 12 hours.

1. Conference Venue

5. Conference Pack

The official function will be held at the Speke Resort Munyonyo, on the shore of Lake Victoria, in the City of Kampala.

Each delegate will be issued with a conference pack comprising one conference bag, a pen, a note book, a seminar magazine and sponsors’ promotional materials. Participants are advised to take care of and label their valuable items for ease of identification. There is no provision for replacement of any lost items.

2. Accommodation

Delegates are advised to stay at designated hotels as provided on http://www.aioconferenceuganda.com/hotel.html.

6. Standard Meals and Drinks 3. Time keeping

Please be punctual. The organizers will stick to the time schedule provided in the programme.

4. Inter-Hotel Transport

Delegates will be provided with complimentary inter-hotel transport to and from the designated hotels. For security reasons, delegates are strongly encouraged to use official transport to and from the conference venue. A travel company will be on-site to help you in case you need to make a private journey to any place in Kampala.

AFRINSURANCE MAGAZINE | May 2017 AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

Standard meals and drinks will be served as specified on the programme. Conference delegates are entitled to all meals specified. Break tea and lunch will be provided for all participants from May 22, 2017 to the end of the conference at Speke Resort Munyonyo.

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African Insurance Organisation

7. Dinners

11. Health insurance

As part of your conference package, dinners will be provided as per the schedule below.

Our partners AXA assistance have provided complimentary ambulance and first aid medical services for the duration of AIO 2017 at Speke Resort Munyonyo. All delegates can access AXA on mobile number +256 701 746 557

Function Venue Monday 22nd May 2017 Official Speke Resort opening of the ball room conference Munyonyo AFRICA RE Lake Victoria dinner Hotel Serena Kigo Tuesday 23rd May 2017 ZEP RE Speke Resort Munyonyo Lakeside

Entertainment Ndere troupe

12. Language Afrigo Band

Crane performers, Isaiah Katumwa, Lillian Mbabazi, Sundowners band.

Wed 24th May 2017 Gala Dinner Kampala Serena Fusion band Hotel and Iryn Namubiru Joseph Mayanja (Chameleone)

8. Badge (Name Tag) Each delegate must use the AIO name tag to access all official functions and venues. The name tag will serve as your security pass as well.

9. Security

For your safety, security at AIO 2017 has been enhanced. Delegates are requested to cooperate with all security personnel. Delegates with vehicles are strongly advised to park their vehicles in the gazetted parking areas.

10 Weather The weather in Uganda is good all year round, hot and wet, while daytime temperatures generally hover between 27°C - 18°C. There may be some light showers in the course of the congress. The weather cools down at night; enough for a jersey but woolens are not necessary. The warmth of the Equator and the cool breezes of Lake Victoria generate tender and pleasant weather in the evenings. Light clothing, sturdy shoes and a sweatshirt or fleece for evenings will be perfect.

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The official languages for the AIO are English and French. English, Luganda and many local dialects are widely spoken. Swahili is also spoken and understood.

13. Currency

Ugandan Shilling is our currency and is easily convertible at numerous Forex Bureaus and commercial banks in Kampala and the main towns. Visa cards are accepted by most hotels and restaurants and can be cashed to limited amounts per day at the counters of some banks.

There are ATM machines that can cash some credit and debit cards.

14. Extras

Medical, meals and drinks outside the scheduled times and drinks outside the scheduled times and places are not covered by the AIO package.

15. Tourism

Uganda has many beautiful tourism attractions.

There are four companies on-site to arrange tours for you around the country. It is advisable to use this opportunity to see the gifts of nature bestowed on Uganda.

16. General Administration

For Assistance, contact any of the following officers; Name Mr. Sande Protazio Mr. Solomon Rubondo Mr. Ronald Musoke

Responsibility Telephone Over all coordinator +256 755 848053 Protocol +256 776 711953

Accommodation/ logistics Mr. Latimer Mukasa Transport Mr. Paul Muhame PR, Media & Events Management Mr. Maurice Amogola Technical –Insurance Related Ms. Grace Kiwanuka Health and Safety Hajjat Sebyala Gala Dinner Aphwa Mariam Administration/ Nalunkuuma coordinator

+256 752 779977 +256 776 262800 +256 782 483008 +256 772 362090 +256 751 903646 +256 784 031420 +256 772 945414

AFRINSURANCE MAGAZINE | May 2017 AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

Programme 44TH AIO Conference & General Assembly

21 - 24 May 2017 Venue: Common Wealth Speke Resort, Kampala-Uganda Theme: Furthering the Financial Inclusion Agenda of African Nations through Insurance Saturday, 20 May 2017 14:00-18:00

Arrival and Registration

14:30-16:30

AIO Finance Sub-Committee

17:00 -18:00

Management Committee of CARCAT Sunday, 21 May 2017

09:00–18:00

Registration

09:00-12:30

AIO Executive Committee meeting

12:30-14:30

Lunch (Executive Committee)

14:30-16:30

AIO Life Committee Meeting

16:30-18:30

AIO Pools –Technical Committee

19:30

Free evening

09:00-09:15

African Insurance Barometer

09:20 -09:40

Microinsurance Update

10:00 -10:45

Conference Opening Ceremony

Monday, 22 May 2017

10:45-11:15

Coffee Break

11:15-12h30

1st Session: Driving insurance penetration: Developing affordable, need-based products and building an appropriate delivery system.

12:30-13:30

2nd Session: Sustainable agriculture through agriculture insurance.

13:30-14:30

Lunch

14: 30-16:30

Meeting of AAIET

16:30-18:00

Meeting of AAISA

19:30

Dinner (Sponsored by Africa Re) – Serena, Kigo

09:00-09:30

Potential Collaboration between AIO & IISA on Insurance Education in Africa

09:30-10:45

3rd Session: Accelerating financial inclusion through regulation – a case for harmonization of Insurance Regulation?

10:00-11:30

Coffee Break

11:30-12:30

4th Session: Developing effective consumer education approach.

12:30-14:00

Lunch

14:00-16:00

Meeting Life Insurers Forum

16:00 -17:30

Meeting African Insurance and Reinsurance Brokers

17:30 – 18:30

Meeting of the Association of African Reinsurers

20:00

Dinner (sponsored by ZEP RE) – Speke Resort, Munyonyo

Tuesday, 23 May 2017

Wednesday, 24 May 2017 09:00-12:00

AIO General Assembly

12:30-14:00

Lunch

20:00

Closing Ceremony and Gala Dinner

09:00

Excursion Departure of Delegates

Thursday, 25 May 2017

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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African Insurance Organisation

Programme 44Ème Conference Et Assemblee Generale De L’oaa 21 - 24 Mai 2017

Lieu: Common Wealth Speke Resort, Kampala-Ouganda Thème: “Promouvoir le Programme d’Inclusion Financière des Nations Africaines par le biais de l’Assurance ” 14h00 – 18h00 14h30 – 16h30 17h00 – 18h00 09h00 – 18h00 09h00 – 12h30 12h30 – 14h30 14h30 – 16h30 16h30 – 18h30 19h30 09h00 – 09h15 09h20 – 09h40 10h00 – 10h45 10h45 – 11h15 11h15 – 12h30 12h30 – 13h30 13h30 – 14h30 14h30 – 16h30 16h30 – 18h00 19h30 09h00 – 09h30 09h30 – 10h45 10h45 – 11h30 11h30 – 12h30 12h30 – 14h00 14h00 – 15h30 15h30 – 17h00 17h00 – 18h30 19h30 09h00 – 12h00 12h30 – 14h00 14h00 – 17h00 20h00 09h00 09h00 – 12h00

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Samedi, 20 Mai 2017 Arrivée et inscription Réunion du Sous-Comité Finance de l’OAA Comité de Direction du CARC Dimanche, 21 Mai 2017 Inscription Réunion du Comité Exécutif de l’OAA Déjeuner du Comité Exécutif Réunion du Comité –Vie de l’OAA Réunion du Comité Technique des Pools de l’OAA Cocktail de Bienvenue Lundi, 22 Mai 2017 Baromètre de l’Assurance en Afrique Mise à Jour sur la Microassurance Cérémonie d’Ouverture Pause-Café 1ère Session: Favoriser le développement de l’assurance: développer des produits abordables et basés sur le besoin et bâtir un mode de distribution approprié.

2ème Session : Agriculture Durable grâce à l’Assurance Agricole Déjeuner Réunion de l’AAIET Réunion de l’AAISA Dîner offert par AFRICA RE Mardi, 23 Mai 2017 Collaboration Eventuelle entre l’OAA et l’IISA sur la Formation en Assurance en Afrique 3ème Session: Accélérer l’inclusion financière par le biais de la réglementation-un motif pour l’harmonisation de la réglementation des assurances ?

Pause-Café 4ème Session: Elaborer une approche efficace de l’éducation des consommateurs.

Déjeuner Réunion des Courtiers Africains d’Assurance et de Réassurance Forum des Assureurs-Vie Africains Groupe de Travail sur la Microassurance Diner offert par PTA RE Mercredi, 24 Mai 2017 Assemblée Générale de l’OAA Déjeuner 10ème Forum consultatif sur la réglementation de la micro-assurance pour les autorités de contrôle de l’assurance, les opérateurs d’assurance et les décideurs politiques sur le thème « Etendre l’assurance agricole indicielle en Afrique : renforcer la résilience des petits exploitants agricoles aux catastrophes» Cérémonie de Clôture et Dîner de Gala offert par le Marche Locale Jeudi, 25 Mai 2017 Excursion 10ème Forum consultatif sur la réglementation de la micro-assurance pour les autorités de contrôle de l’assurance, les opérateurs d’assurance et les décideurs politiques sur le thème « Etendre l’assurance agricole indicielle en Afrique : renforcer la résilience des petits exploitants agricoles aux catastrophes » Départ des participants AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

Conference Speakers

Hassan Chakib Director of Launching and International Development - WAFA

M. Jean Kacou Diagou Chairman - NSIA Insurance

Jonathan Dixon Deputy Executive Officer for Insurance, Financial Services Board (FSB), South Africa

Rahab Kariuki Managing Director - ACRE Africa

Rehan Butt Group Business Director - MicroEnsure

Shadreck Mapfumo Senior Financial Sector Specialist World Bank Group

Christopher Musoke CEO - Financial Sector Deepening Uganda Ltd

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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African Insurance Organisation

AIO Member States

Tunisia Morocco Algeria Libya

Mauritania

Mali

Sudan

Djibouti

Burkina Faso

Guinea

South Sudan

Nigeria

Sierra Leone

Ethiopia

Cameroon

Liberia

Ghana Congo

The Gambia

Eritrea

Chad

Senegal

Cote d’Ivoire

Gabon

Rwanda Burundi

D,R Congo Tanzania

Togo

Angola

Zambia

Benin

Namibia

Zimbabwe Botswana

Associate Members outside Africa Australia Bahrain France Germany India Swaziland U. A. E. United Kingdom

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Uganda

Kenya

S. Africa

Seychelles Malawi

Mozambique

M adagascar

Cape Verde

Egypt

Mauritius

Swaziland Lesotho

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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African Insurance Organisation

Insurance Industry has Much Room for Growth Alhaj Kaddunabbi Ibrahim Lubega is the CEO of the Insurance Regulatory Authority of Uganda. He is also the Vice President of the African Insurance Organization and chairman of the Local Organizing Committee of the 44th AIO Conference and General Assembly. He speaks about the current state of insurance in Africa and the future outlook of Uganda’s insurance industry. Excerpts:

What is African Insurance Organization?

The African Insurance Organization (AIO) was established in 1972 in Mauritius to develop a healthy insurance and reinsurance industry in Africa and to promote inter-African cooperation in insurance.

Membership to AIO is open to insurance industry regulatory/supervisory authorities, insurance training centres and national and regional insurance associations. Membership currently stands at 365,351 of whom 47 are from African countries, while 16 are associate members from eight countries outside Africa.

What are some of the achievements that AIO has registered since inception?

IAO has registered tremendous achievements since inception. It has worked on various initiatives to among others, consolidate and strengthen a number of insurance pools to grow African insurance and reinsurance capacity across the continent. It has worked to develop micro insurance, has promoted African regulatory capacity building and promoted the capacity building of African training institutes.

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The AIO also hosts an annual conference and general assembly that creates a platform for members to share global and continental experiences on insurance and re-insurance matters with the overall goal of collectively furthering the development of the insurance industry.

You are now hosting the 44th AIO conference; what is in it that Uganda’s insurance industry is set to benefit?

The conference will provide a platform for the entire continent to discuss the industry challenges and the opportunities for growth. We shall

also discuss the core of strategizing and agreeing on the plans to provide services to Uganda and to Africa as a whole. The conference therefore is aimed at facilitating and the sharing of knowledge and learning of the best practices in deepening financial inclusion. It therefore goes without saying that the meeting is timely and will enhance professionalism at the local as well as continental and international levels.

This is the second time that Uganda is hosting AIO since 1998.

What did Uganda learn from the first conference?

The first conference was held at a time when the industry regulator was just one year old, then known as the Uganda Insurance Commission (UIC). The issue of effective legislation was discussed and as such we had the capacity to grow from a mere commission as it was to a fully-fledged Authority now.

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

The first conference was held at a time when the industry regulator was just one year old, then known as the Uganda Insurance Commission (UIC). The issue of effective legislation was discussed and as such we had the capacity to grow from a mere commission as it was to a fully-fledged Authority now.

being developed looking at experiences from other countries including agriculture insurance and a number of micro insurance products. And most important, Uganda now has its own reinsurance company known as Uganda Re. Capacity building has been strengthened in the industry thanks to our insurance training institute.

We have also had amendments to our laws to bring about effective supervision of the industry. New products are

What opportunities do you see in the country’s insurance industry?

The opportunities are many and the future is promising. With the creation of oil and gas pool syndicate and getting ready for big infrastructural projects, the insurance industry is the best investment and resource.

With the proposed amendment of the regulatory frameworks – Insurance Act, Motor Third Party and the National Health Insurance Scheme - the developing of the National Insurance Policy and the Financial Institutions Act for providing of banc assurance, we believe this is set to stir growth in the insurance industry in the coming years.

Given that our penetration is still low at less than 1%, it means that one can have a very good return on investment. I am also seeing the industry regaining its rightful position in the future. Insurance is supposed to be ahead of banking as is the case in developed economies and that is our ambition. Insurance should be a source of income for many of the people via job creation. We have in the last five years created about 1,000 jobs and we still plan to do better.

Where do you see the industry in the next five years?

I am hopeful that the public will be confident that insurance is the best risk mitigator, and that there will be no medium to big project in Uganda that will be uninsured.

I am also hoping that in the next few years, we will have micro-insurance policies that address the needs of the ordinary person and the contribution of the life insurance segment will be closer to 50% of the gross premium underwritten.

Finally, I also expect that the regulator shall have more visibility both in infrastructure development and in job creation.

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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African Insurance Organisation

At Par with International Best Practice Insurers Association’s ten-year strategic initiatives, aimed at re-positioning the sector as an engine of social and economic growth, are gaining traction

By Mr. Deepak Pandey, Chairman, Uganda Insurers Association

In order to grow an orderly insurance market, in 1965 insurance companies in Uganda founded the Uganda Insurers Association (UIA) to establish common standards for the insurance and reinsurance environment in Uganda. At the time, the Association had 3 members and the industry was in its nascent stages. 52 years later, the Association has grown to 31 members and the insurance industry is now a key player in the sustainable growth and development of the Ugandan economy.

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ver the years, the Association has engaged the Government on key areas of intervention for the overall well- being of the population and deepening of insurance penetration, which currently stands at 0.7%. These areas of intervention include enforcement of compulsory lines of insurance (Motor Third Party and Workers Compensation Insurance) as well as tax incentives, and insurance of government assets, among others.

The sector, however suffered a setback in 2014, following the removal of the VAT exemption on insurance services, which conversely affected uptake by particularly individual consumers that are not entitled to VAT recoveries.

The sector continues to engage the Government on streamlining of taxes on insurance.

Furthermore, over the years following advocacy by the Association, a national reinsurer entitled to compulsory cessions (15%) - the Uganda Re - was recognised in the 2011 Amendments to the Insurance Act, 2000. The Amendments, among others, further introduced an increment in minimum capi-

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tal requirements from $27,777 to $1.11 million for Non – Life companies and $833,333 for life companies as well as the separation of life and non-life lines of business. These placed the Uganda market in line with international best practice and bolstered confidence in the sector’s capacity to write greater risks, including Oil & Gas risks.

We have further enabled the consolidation of technical and financial capacity by establishing both the Oil & Gas Co- Insurance Syndicate and the Agriculture Insurance consortium in 2016.

The Agriculture Insurance consortium was put in place in furtherance to an agreed public-private partnership arrangement with the Government of Uganda represented by the Ministry of Finance while the insurance sector was represented by the Association.

The Uganda Agriculture Insurance Scheme (UAIS) is being managed by the Association.

Noting the above strategic initiatives, all intended to re-position the sector as an engine of social and economic growth, consumer education remains at the core of what we do. We further

remain cognizant of the fact that we cannot achieve the growth of our industry without advocating the collective growth of the financial services sector through increased financial literacy.

This, for us, translates into an increased understanding and appreciation of insurance. We have heavily invested in countrywide consumer awareness and education programs, which make use of both traditional media (radio, TV, and print) as well as experiential marketing to get information about insurance into the hands of the consumer. Our current consumer education and awareness campaign, for example, primarily concentrates on four product categories - Life, Motor, Workers Compensation and Agriculture insurance as these are the most relatable products to the population.

We are also working with partners including the Financial Sector Deepening Uganda (FSD Uganda) to understand the financial and risk management needs of our market in order to improve overall service delivery and grow financial literacy. In partnership with FSD Uganda, which extends to, among others, research and capacity

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

building, we have carried out an assessment of the insurance value chain to understand our points of weakness and strengths. Under our Research Department at the Secretariat, we have also studied the Micro, Small and Medium Enterprise (MSME) category to determine the correct product and distribution mix for MSMEs and have identified life insurance as a key growth driver.

In Uganda, Life insurance grows at an average of 34% every year. Our expectation is that if we can replicate the strengths therein, we can ensure systematic growth in both long and short term insurance.

Further, we have taken a proactive approach by putting in place a tenyear Market Growth and Development plan under which penetration is projected to grow from less than 1% to 3% by 2025. The plan is built on four

In Uganda, Life insurance grows at an average of 34% every year. Our expectation is that if we can replicate the strengths therein, we can ensure systematic growth in both long and short term insurance.

main pillars, which we expect to bring change in the medium to long term.

These are; ■■ Increased awareness about insurance, ■■ Leveraging on technology, ■■ Research, ■■ Lobbying and advocacy.

UGANDA INSURERS ASSOCIATION Est. 1965

31 MEMBERS

20 09 02

NON - LIFE INSURANCE COMPANIES

LIFE INSURANCE COMPANIES

REINSURANCE COMPANIES

FOUR TIME WINNER OF THE BUSINESS ASSOCIATION OF THE YEAR AWARD PRIVATE SECTOR FOUNDATION OF UGANDA

We will continue to work with partners in both the private and public sector. We are confident that with the above and other initiatives that include changes in product design and distribution, we should see a change in the way we present insurance in this market and see our penetration grow from less than 1% to 3% over the next ten years.

For our initiatives, we have been awarded the Private Sector “Business Association of the Year” Award four times (2015, 2011, 2009 and 2008), which speaks to the strength of the Association in informing market development.

The Uganda insurance market, supported by a strong regulatory environment, has accordingly become and will remain a key investment destination.

Alliance Africa General Insurance Ltd APA Insurance (U) Ltd Britam Insurance Company (U) Ltd CIC General Insurance Ltd CIC Africa Life Assurance Ltd East African Underwriters Ltd Excel Insurance Company Ltd First Insurance Company Ltd Goldstar Insurance Company Ltd ICEA Life Assurance Co. Ltd ICEA General Insurance Co. Ltd Jubilee LifeInsurance Co.of Uganda Ltd Jubilee Insurance Co.of UgandaLtd Liberty Life Assurance Uganda Ltd Lion Assurance Company Ltd NIC Life Assurance Co. Ltd NIC General Insurance Co Ltd NOVA Insurance Company Ltd Metropolitan Life Uganda Ltd Pax Insurance Company Ltd Phoenix of Uganda Assurance Co. Ltd Prudential Uganda Ltd Rio Insurance Company Ltd Sanlam General (U) Ltd Sanlam Life Insurance (U) Ltd Statewide Insurance Company Ltd Transafrica Assurance Company Ltd UAP Old Mutual Group Uganda Reinsurance Company Ltd Africa Reinsurance Corporation

Uganda Insurers Association Insurers House Plot 24A Acacia Avenue, Kololo, Tel: +256 414 500945 , Website: uia.co.ug, Email: info@uia.co.ug

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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African Insurance Organisation

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Strength, longevity, loyalty; anD MoSt oF all, truSt. at Jubilee we never forget what we stand for.

East Africa’s Most Trusted Insurer talk to us: 0752 260 899 jubileeinsurance.com

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AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

SCALING NEW HEIGHTS

A RISING REINSURER GIC RE, INDIA’S RATING : TOTAL ASSETS: NET WORTH : GLOBAL RANKING : GLOBAL FOOTPRINT :

S&P

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SMALL ENOUGH TO LISTEN, BIG ENOUGH TO DELIVER… AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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African Insurance Organisation

‘The Africa We Want’ Richly endowed with natural resources, Africa will say bye to poverty if Africans make use of insurance to create frameworks that ensure proper utilisation of natural resources through investment and export growth

I

By Gordon Sentiba, Chartered Insurer, is the Chairman of Guardian Reinsurance Brokers (Uganda), and a former President of African Insurance Organisation (AIO).

t is 19 years since Uganda last hosted the African Insurance Organisation (AIO) Conference and General Assembly in 1998. As the first Ugandan to have served as President of African Insurance Organisation, it gives me much pleasure to welcome the AIO delegates back to Kampala.

Uganda is much changed since 1998 and is growing fast to attain middle income status by 2020.

The African Insurance Industry continues positively to integrate and to grow thus helping Africa to achieve the founding fathers’ dream of a united Africa.

The dream of a united Africa is achievable, if the management of African economies remains focused on ensuring that Africans are not only politically in charge of African affairs but are also in control of their economic resources.

Africa is endowed with huge volumes of raw materials to which the African economies must add value to produce goods and services that meet the tastes of international consumers. It follows therefore, that Africa’s development hinges on the ability of African economies to exploit the vast raw materials on the continent into goods and services capable of competing on an international stage as envisaged under the World Trade Organisation (WTO) rules to which most African countries are signatories.

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For this to happen, Africa must acquire technological know-how and have low cost medium to long term financing to sustainably build industries and businesses that can produce such competitive goods and services.

However, Africa has been slow to understand that the rest of the world does not owe it any favours but can only exploit its resources.

Meaningful development for Africa is when the African people are fully involved in the harnessing of the continent’s resources, and when most of the benefits of the same accrue to the same African peoples.

This situation can only be achieved where there is a frame work that enables African peoples to quickly build medium to long term local financial resources for

investment in this process.

Africa should not expect to reap maximum benefits for its people when it continues to use other people’s medium to long term savings in the utilisation of its natural resources.

Africa needs to move fast using its Insurance Industry as a base, to create a frame work and platforms to speed up the mobilisation of medium to long-term local savings for its citizens. The medium to long-term local saving pools will provide the much-needed low cost medium to long term investment finance to achieve a more beneficial development model for African peoples thus creating the ‘Africa we want.’

China and other South East Asia States specifically created these platforms, and they now have adequate medium

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

to long-term cheap local financing to produce goods and services that can compete in international markets. They have also developed the capacity to further invest in other regions of the world including Africa.

It is now critical for Africa in general and the Africa Insurance Industry in particular to develop frameworks and platforms that are relevant to the African situation so as to ensure that African citizens reach a level where they are united and in control of their economic destiny.

The African Insurance Industry already knows that individually, African citizens may be classified as ‘poor,’ but using a proper platform or a medium to long term Insurance scheme that collects from the millions of its members, the so “classified poor” can create huge savings pools that can be a source for investment finance. The accruals from the Invest-

Meaningful development for Africa is when the African people are fully involved in the harnessing of the continent’s resources, and when most of the benefits of the same accrue to the same African peoples. ment activities can then get credited to the savings pools for the benefit of those classified as the ‘poor.’

The Africa that we want must push this agenda if our peoples are to be the masters of their own destiny.

Indeed, Africa has a population of over a billion citizens, vast natural resources, and can acquire the technology to produce goods and services that can

The world’s only specialist insurance and reinsurance market Please come and visit Lloyd’s in the Jacaranda Room on the first floor of the Main Conference Hall.

You will be able to meet specialist underwriters and brokers from the Lloyd’s market.

compete for the international consumer.

For example, Uganda has the biggest acreage of Bananas in the whole world!

However, Uganda earns less than US$20 million from the export of its Bananas in a year, yet Brazil, which has the third largest acreage of Bananas, earns more than US$3 billion from the export of its Bananas in a year. If Uganda, with a population of about 35 million people, had a mandatory insurance scheme for the mobilization of medium to long-term local savings, the country would have an adequate savings pool to provide the needed funding to prepare and deliver the Bananas produced to the international consumer.

Uganda would be nearly US$5 billion richer every year!

The African Insurance Industry has the duty to push and create “The Africa we want.”

Representatives from the following companies will be available to discuss your business requirements:

NEWBRIDGE RISK PARTNERS LLP

Win an iPad Visit Lloyd’s in the Jacaranda room for details on entering our competition.

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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African Insurance Organisation

AIO

44th Annual Conference Kampala 21st - 24th May 2017

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5/11/2017 10:01:42 AM

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

Mass Market Appeal By studying the success of other brands, MicroEnsure has learnt vital lessons that could spur insurance penetration into the African mass market

I

nsurance across Africa is undergoing a sea of change even if the waterline appears relatively undisturbed to some. While many chief executives pin hopes for insurance growth on big ticket items such as the premium cheques connected to newly-discovered oil reserves, novel industries are popping up around the continent by following a time-tested formula: giving the average citizen access to goods and services previously reserved for the well-to-do. For insurance to experience large-scale growth, it must follow the same path so as to cover the African mass market.

It’s hard to imagine today, but some of the most common brands across Africa – Guinness, Crest toothpaste, Coca-Cola, etc – were perceived for many years as high-end ‘luxuries.’

For example, when South African telecom operator MTN originally invested in Nigeria, it forecast the entire mobile market would only ever reach 15 million people at the top end of the pyramid.

However, within five years of its launch, the company had more than doubled that figure on its own - on its way to building one of the continent’s most enduring mass-market brands.

The other example is new public transport entrant Uber. In the past year alone, Uber has cut the fare of a taxi by two-thirds in many areas of Nairobi in Kenya, thus increasing access to private transportation for hundreds of

By Peter Gross, Director of MicroEnsure Labs thousands of people in a city famed for its traffic jams. For wealthy Kenyans, this price collapse has meant trading their second hand vehicle for a smartphone app; but for the average person, Uber means avoiding the daily pain of walking to buses and waiting in endless queues. By addressing a common set of pain points while re-defining how to move from point A to point B, Uber is introducing a new category of service to everyday consumers.

Insurance has much to learn from such brands that have successfully penetrated the African mass market. While it’s true that insurance is a different sell than say a Coke, that isn’t necessarily negative.

Insurance, in my view, has more potential than consumer goods to resonate with customers’ deep-seated emotional and social values – and even more so with mass-market customers who are disproportionately exposed to risks.

However, because insurance penetration lags in the single digits, there remains a significant gap between potential and reality. So, how is it to be addressed?

At MicroEnsure, we’ve made a start at narrowing this gap, with nearly 50 million registered customers in Africa and Asia over the last few years - more than 90% of whom had never before been insured. At the heart of our results has been a rigorous dedication to customer centricity in the design and delivery of our products. In essence, we’ve grown because we’ve mirrored the product

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

simplicity, the route to market, and the service models of other large consumer brands.

There is a common myth that insurance is a zero-sum game, where the fewer the benefit a customer receives, the more money the insurer earns. However, consumer goods have demonstrated that customer value and brand value are intertwined. So, what are the implications of customer centricity for the insurance industry?

Product Design

One rule of thumb at MicroEnsure is that the product must be simple enough for a lady in the market to explain to her sister in one minute or less. That goal starts with a product that addresses real customer needs. To identify these needs, we spend time in markets, villages, and slums - watching our customers go about their daily lives. This process leads us to uncover completely new types of products. For example, when one of our teams in West Africa visited informal shopkeepers, they identified a common fear: that an unscrupulous landlord may charge excessive rental fees and threaten to “decongest” (bulldoze) their shops. We subsequently offered a Decongestion Insurance product, which found high levels of patronage.

We did not need to educate the market about this product; rather, we saw that our customers sought it out as a unique solution for a common problem. Life, ac-

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African Insurance Organisation

cident and health insurance are similar for us: rather than investing in expensive educational campaigns, we simply let the product’s benefits and price point speak for themselves. ‘Education’ is just a marketing campaign behind a product that is well-priced, simple, and designed to meet customers’ needs. With no exclusions, fine print, or legal jargon, our customers understand what they are buying.

Product Delivery

The Product, though, is only one part of the equation. The more important question is; how do we deliver insurance for the mass market? Administration, distribution and customer service present challenging barriers. Administration sometimes requires a specialist provider, but today it can be done for a fraction of the cost of a traditional policy. Because the product is simple, expensive administrative processes are avoided thus lowering costs. Risk exposure, meanwhile is limited through fixed benefits, short terms of risk, small sums assured and other features, which satisfy prudential requirements without compromising consumer preferences.

Distribution is usually the toughest nut to crack. While some micro-insurance schemes use agents, their costs can

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consume 50-80% of the retail premium.

More efficient, in MicroEnsure’s experience, is to partner with a great brand for whom insurance is a strong complementary fit.

Because mass-market consumers are disproportionately exposed to risk, a great brand that helps to protect its customers will be rewarded by them and the resulting increase in revenue, transaction frequency, and loyalty, do generate far more for the brand than an insurer could typically pay in commissions. Once a “spearhead” product creates buzz, the customer will come back to that brand for other insurance products, thus providing a runway for the insurer to reach millions of mass-market customers without building out his own network.

Large-scale distribution also forces improved customer service. Mass-market customers expect insurance to work just as conveniently as any other product.

They do not accept harsh claims officers and lengthy processes, and will use social media to enforce their preferences. Better service then kicks off a vicious cycle of sales and service: a happy customer shares his experience, others buy the product, and so on.

Fraud, meanwhile, is a smaller problem than under-reported claims - at least for the first 24 months of a mass-market launch - and by that time, due to the size of the customer base, data analytics can help an insurer to get on top of any significant fraud schemes before they cause major harm.

Insurance for the masses involves a careful equilibrium that balances prudence with convenience, elegance with rigor. However, the experience of MicroEnsure indicates that the solutions may be more available than many insurers think. Rather than considering insurance to be irrelevant to brands that delight millions, the path to mass market growth might be to imitate those very brands.

As smartphone penetration expands rapidly across Africa, new avenues to the customer are increasing by the day.

The only question is whether insurers will take advantage, and seize their ‘Uber moment’ – or whether an ‘Uber of insurance’ will seize it for them.

Peter Gross is the Director of MicroEnsure Labs. MicroEnsure is a specialist micro-insurance provider with nearly 50 million registered customers across Africa and Asia.

Learn more at www.microensure.com.

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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African Insurance Organisation

Regional Sponsors

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AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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Strength,

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African Insurance Organisation

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40554_East Africa Launch-UGANDA Print Ad (297x210).indd 1

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017 2017/05/15 4:05 PM

Uganda Insurance Industry: Key Facts and Figures

By Protazio Sande, Assistant Director, Market Research & Development, IRA

Operative and legislative environment overview

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he Insurance Industry in Uganda is governed under the Insurance Act (Cap 213) Laws of Uganda, 2000 (the Insurance Act) as amended by the Insurance (Amendment) Act, 13, 2011 and is regulated by the Insurance Regulatory Authority, Uganda.

To date, 29 Insurance companies (21 Non-life & 8 Life), 1 Reinsurance company, 11 HMOs, 30 Brokers, 21 Loss Assessors/ Adjustors/ Risk Mangers, and about 1,000 Agents are licensed to operate. The intensive competition has meant that Companies have become more innovative in terms of product design, product distribution/ delivery and above all customer service.

Re-introduction of Value Added Tax on insurance services (except Life and Health) – the lifting of the VAT waiver on insurance services coupled with the upward revision of Stamp Duty from Ushs 5,000 to Ushs 35,000 have continued to have a negative impact on the demand for the highly price-sensitive individual and other retail insurance products.

1 Reinsurance company

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11 Health Membership Organisations (HMOS)

Insurance companies (21 Non-life & 8 Life)

Uganda’s INSURANCE INDUSTRY

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Insurance Brokers

With effect from October 01, 2014, all companies were required to raise their minimum paid up capital from UShs 1 billion to UShs 4 billion for Non-life companies and UShs 3bn AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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1,500 Insurance Agents are licensed to operate

Loss Assessors/ Adjustors/ Risk Mangers

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African Insurance Organisation

Selected performance indicators (2011 -2015) YEAR

2011

2012

2013

2014

2015

Gross Insurance Premium (UShs. Billions)

297

352

463

504.8

612.1

Gross Insurance Premium Growth rate (%)

23.69

18.66

31

9

21

Non-life Gross Premium (UShs. Billions)

262

313

351.4

384

464.4

Non-life Gross Premium Growth Rate (%)

21.22

19.34

12.3

9.3

21

Life Gross Premium (UShs. Billions)

35

39

55.4

74

99.8

Life Gross Premium Growth Rate (%)

46.32

13.5

41.1

33.6

34.8

56

46.8

47.8

Health Membership Organisations (HMOs) Gross Premium (UShs. Billions) HMO Income Growth Rate (%)

-

-

-

(16.4)

2.36

INSURANCE PENETRATION (%)

0.65

0.66

0.85

0.86

0.761

INSURANCE DENSITY ($)

3.78

3.81

5.2

5.3

5.4

for Life companies. Re-insurers were required to raise their minimum paid up capital to UShs 10bn. This has since been complied with and in fact, most companies are actually in excess of the legislated minimums. The increase in capital base coupled with strong liquidity for most companies allow them to support and service their clients better on one hand, and increase their retention capacity on the other.

Performance Highlights (Exchange rate 1US$ = UShs 3,600) The Gross premium underwritten by the insurance industry increased from UShs 502.65 billion in 2014 to UShs 611.12 billion in 2015, representing a composite growth of 21.58%.

In terms of composition, Non-life business continued to dominate the insurance industry in terms of premiums underwritten. It accounted for 76% of the total industry premiums compared to life which accounted for 16.3% while HMOs contributed 7.7% of the total premiums in 2015.

The Life Insurance premiums continued to grow relatively much faster at a rate of 35.67% in 2015 while NonLife and HMOs grew by 21.47% and 0.26% respectively.

The proportion of Life insurance pre-

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The Insurers’ (including HMOs) Net Asset base (i.e.

Assets less Liabilities) rose from UShs 316 billion in 2014 to UShs 373 billion in 2015, representing a growth of 18%. This highlights the growing strength of companies to handle insurable risks locally and provide adequate protection to the insuring public.

miums in total premiums grew from 13.7% in 2014 to 16.34% in 2015. This is attributed to the effective separation of the hitherto composite companies, the increase in private sector credit (credit life), product innovation, and aggressive marketing by individual companies, among others.

The Insurers’ (including HMOs) Net Asset base (i.e. Assets less Liabilities) rose from Ushs 316 billion in 2014 to UShs 373 billion in 2015, representing a growth of 18%. This highlights the growing strength of companies to handle insurable risks locally and provide adequate protection to the insuring public.

The Gross claims paid for both Life and Non-life insurance (including HMOs) rose from UShs 184.3 billion in 2014 to UShs 214 billion in 2015 representing a growth of 16.08%. This excludes the outstanding claims and those that will emerge from the longterm policies.

Doing insurance business in Uganda Minimum Paid-up Capital Requirements: ■■ Reinsurance Company - UShs 10 billion.

■■ Non-life Insurance company UShs 4 Billion ■■ Life Insurance company – UShs 4 billion ■■ Insurance Broker - UShs 75 million ■■ 0.5% (Training levy) of gross written premium must be remitted to the Insurance Institute of Uganda.

Mandatory Minimum Reinsurance Cessions: ■■ Africa Re - 5% ■■ Zep-Re (PTA Re) - 10% ■■ Uganda Re – 15% ■■ No person can be allowed to transact the business of Life insurance and non-life insurance as a composite company.

Laws and regulations, Licensing Requirements and Publications can be accessed from www.ira.go.ug.

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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P. O. Box AN 7509 Accra-North Tel: +233(0)302 633 733 Fax: 233 (0)302 633 711 Email: info@ghanare.com Web: www.ghanare.com

REGIONAL OFFICE CAMEROON Rue Drouot Akwa, P. O. Box 1177 Douala, Cameroon Tel: +237 99318959

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African Insurance Organisation

STRONG & FEARLESS

MISSION

We put smiles on the faces of our stakeholders.

VISION

We are the region’s most respected group, creating and protecting wealth.

UGANDA

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AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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GUARDIAN

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GUARDIAN REINSURANCE BROKERS (U) LIMITED v At Guardian Reinsurance Brokers our approach to business is based on a unique set of principles to ensure we are one of the preferred brokers in the market. v At Guardian Reinsurance Brokers you can expect nothing less than excellent service. We aim to develop relationships based on mutual trust and offer services that people actually demand for. v Belonging to a big network of Insurance and Reinsurance players ensures that we have wider reach. v We believe that our commitment to you and efficient service will mean that you choose us all the time

Contact us; 2ndFloor Crown House, Kampala Road. Kampala, Uganda.

Telephone: +256 414344500/4 Fax: +256414344500 Website: www.guardianrebrokers.co.ug Email; guardianreuganda@gmail.com AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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African Insurance Organisation

Who we are Ad FA (21 X 29.7 CM).indd 1

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2/10/17 6:27 PM

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

The Agro-Insurance Consortium: Answer to Sustainable Agriculture The multi-billion Shilling Uganda Insurance Agriculture Scheme (UAIS) is being implemented by a consortium of ten companies under a public-private partnership

By Muyaradzi Daka Technical Manager, Agro-Insurance Consortium

O

ne of the key factors that limit and constrain investments, increased productivity and modernization of agriculture, is the unpredictability and variability of weather. The dependency on rain-fed agriculture exposes the smallholder farmers to weather-related risks, which negatively impact household income and food security.

At the same time, smallholder famers find it almost impossible to access financial credit because they mostly lack assets and have high levels of poverty thus rendering them ‘not

credit-worthy’ in the eyes of financial institutions.

So, in order to ensure sustainable income, farmers need to hedge their risk by transferring it to insurance companies.

The insurance cover will act as collateral to the farmer and/or the financial institutions against these risks of weather variability.

In a Public Private Partnership (PPP) arrangement with Uganda Insurers Association (UIA), the Government of Uganda (represented by the Ministry of Finance)

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

is implementing an Agriculture Insurance Premium Subsidy Scheme over a five-year period. Effective July 01, 2016, UShs.5 billion has been provided for the 2016/2017 financial year.

The Uganda Insurance Agriculture Scheme (UAIS) is an insurance subsidy program for both small and large scale farmers and farmers in high risk areas to ensure that every farmer in Uganda can be protected from the effects of losses of their crops/livestock on their overall income that season.

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African Insurance Organisation

The UAIS is managed by the Agriculture Insurance Consortium (AIC), which is housed under the Uganda Insurers Association (UIA). AIC is currently composed of ten companies. These include; APA Insurance, Goldstar Insurance, Lion Assurance, Phoenix Insurance, Jubilee Insurance, UAP Insurance, CIC General, First Insurance Company, NIC and PAX Insurance.

Crop insurance is being offered on both indexed basis and multi-peril cover.

On index, the claims are a function of a defined index chosen to be a good proxy for incurred crop loss or and multi-peril cover claims are based on actual crop losses. Indexing is mainly being used for micro-insurance while the multi-peril cover is mostly for the large scale farmers.

Progress has been made towards utilization of the subsidy since its inception but

The Uganda Insurance Agriculture Scheme (UAIS) is an insurance subsidy program for both small and large scale farmers and farmers in high risk areas to ensure every farmer in Uganda can be protected from the effects of losses of their crops/livestock on their overall income that season. a few challenges have been encountered.

In most cases, particularly for the smallholder farmers (because of the structure of taxes on insurance products), the taxes end up being higher than the actual required premium - an imbalance that discourages uptake. Through the Association, we are strongly advocating that tax

exemptions are considered on agriculture insurance policies and for the Ministry of Finance to revisit the level of the subsidy for the small holder farmers upwards.

We envisage a scenario where the subsidy would start as high as 80% for the smallholder on a downward sliding scale over a period of time until they are minimal or altogether removed. This will encourage initial uptake and affordability. As the farmer’s productivity grows, their affordability will improve in turn.

The major challenge to uptake has been to do with sensitization and awareness.

More funds need to be set aside for sensitization and awareness purposes and a public education campaign to run alongside the targeted and focused sensitization activities currently in place so as to create mass awareness about the facility.

Plus others Our Branch network covers:

JINJA, MASAKA, GULU, FORTPORTAL, MITYANA, HOIMA, MBARARA, ENTEBBE, IGANGA, SOROTI, MBALE,LIRA, ISHAKA, ARUA, MASINDI, MUBENDE, KYENJOJO

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AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

Uganda’s leading strategic partner in developing insurance solutions.

We have built trust with corporate, micro, small and medium enterprises, agri-businesses, affinity groups and individuals in the provision of relevant insurance solutions.

Let us partner with you.

An A - RATED Insurance provider

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We are the local Issurance Partner of:

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Lion Assurance Company Limited.

Head Office. Plot 18B Clement Hill Road, Shimoni Office Village, Kampala. P.O.Box.7658 Kampala, Uganda.

Office: +256 312 207 000 | @LionAssurance | www.lion.co.ug

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

41

African Insurance Organisation

Deepening Financial Inclusion Given its numerous benefits, the financial inclusion agenda should be the collective responsibility of all stakeholders including the Government.

By Saul Seremba, CEO, The Insurance Institute of Uganda

Low access to affordable financial insurance services is one of the key challenges facing the rural populations. This therefore calls for a framework for financial inclusion - the delivery of financial services at affordable costs to sections of disadvantaged and low income segments of society.

A

s we may realize, insurance occupies an important place in the modern world amid higher and more complex risks. We should note that the measure of insurance penetration and density reflects the levels of uptake and development of the insurance sector in any country. In developing countries - Uganda inclusive - the uptake of insurance has remained irrefutably low and thus creating a daunting task to the various players to raise it up.

Financial inclusion is very important not just to the developed countries but also to the LDCs for a number of reasons. These include; being a necessary condition

42

for sustainable and equitable growth, protection of the poor from the clutches of unscrupulous money lenders, and making it possible for governments to make social security schemes work.

We need to be cognizant of the fact that the financial sector is probably the only sector that has the ability to act as a facilitator and multiplier for overall growth and stability. Economic growth is one of the challenges that African nations face and so it’s important to ensure that as the Ugandan economy grows, all segments of society are part of this growth process.

Insurance therefore, is a very significant aspect in this growth.

According to a recent report by KPMG on the insurance sector in Africa, the major determinants of insurance uptake in any particular country are income levels, political stability, the depth and sophistication of the financial sector, as well as the capacity of companies to innovate, among others.

To further the financial inclusion agenda of African nations through Insurance, it should be a collective responsibility of all players including insurance regulators, training institutions, practitioners and service providers, associations and the Government.

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

Uganda as a nation has been able to adopt enormous interventions in regard to the above struggle. These include; massive sensitization campaigns to the public on the benefits of insurance, designing affordable insurance products for the general population, strengthening supervision of insurance services by the regulator, and promotion of insurance professionalism through the Insurance Institute of Uganda (IIU).

Notably, IIU, whose mandate is to carry out education, certification and professional development in the sector, has made noticeable contributions in supporting the agenda to up insurance penetration as well as financial inclusion.

This has been enhanced through developing training programs tailored to different

The Uganda Insurance Agriculture Scheme (UAIS) is an insurance subsidy program for both small and large scale farmers and farmers in high risk areas to ensure every farmer in Uganda can be protected from the effects of losses of their crops/livestock on their overall income that season.

key stakeholders, has also created awareness to the general public through career talks at universities and schools, public mass trainings, radio talk shows as well as television discussion forums among others to engage the public in a bid to make people appreciate insurance.

needs of the members, and training in the emerging areas so as to build capacity and hence increase professionalism within the Industry.

With these new developments, we believe that the strategic decisions and initiatives will allow the development of the Insurance space in the country as well as investment and business opportunities in the sector.

The Institute, in partnership with other

A number of partnerships and collaborations with different players in the existing and emerging areas from within and out of the country have been established to further benchmark and also learn from the already existing markets for the betterment of our insurance practices.

THE INSURANCE INSTITUTE OF UGANDA

THE INSURANCE INSTITUTE OF UGANDA

The Insurance Institute of Uganda was established in 1964 as the training arm of Uganda’s Insurance Sector with a mandate to carry out education, training and professional development in the Sector. It is also the representative professional body under the Law. The mandate is recognized under the current insurance (Amendment) Act 2011.

MISSION

“To raise professional knowledge through training, examinations, certification, research and improve public understanding of Insurance”

VISION

To be the leading Insurance Training Institution in East Africa and beyond

TRAINING

The Institute offers a variety of academic professional programs aimed at improving professional and career development of its members. These Include: 1. Certificate of Proficiency ( COP) 2. Certificate in Insurance ( CIU) 3. Diploma in Insurance (DIP IIU) 4. 4. Customized short –term Insurance and management courses.

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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African Insurance Organisation

The world’s most trusted face in life insurance Now in Uganda

Talk to us about life insurance

0414-343897 or 0414-343909 www.prudential.ug

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Part of Prudential plc (UK)

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

The Case for Harmonised Laws, Regulations

Policy makers need to understand that the creation of a large single insurance market, higher penetration levels are some of the many potential benefits of harmonised insurance regulations

By Ivan Kilameri, Actuarial Officer/Statistician, Insurance Regulatory Authority of Uganda

T

he 44th AIO Conference and General Assembly in Uganda presents a great opportunity for professionals in the insurance fraternity to share experiences on pertinent issues that have a significant bearing on the African insurance market. This milestone event is being held under the theme: “Furthering the Financial Inclusion Agenda of African Nations through Insurance” and along with it, comes a key topic on “Accelerating of financial inclusion through regulation – a case for harmonization of Insurance Regulation” This Conference comes at a time when most African countries are grappling with low insurance penetration levels.

This is a clear indication that the largest portion of the Africa population does not have access to insurance services, in addition to other financial services such as the capital markets, retirement benefits and banking, amongst others.

Historically, Africa’s insurance sector has lagged behind due to the fact that insurance branch offices are costly to run. The inevitable result is that outside the major urban centres, a vast majority of Africa’s rural population are not insured.

players have started exploring alternative distribution channels to enable them reach the untapped population in the rural areas. African insurance regulators are also looking into how best they can put legal and regulatory frameworks in place, which will go a long way towards enhancing financial inclusion.

There’s no doubt that insurance regulation has got a critical role to play when it comes to accelerating financial inclusion in any jurisdiction. However, local insurance laws and regulations do differ from one jurisdiction to another.

Through harmonisation, local insurance laws are greatly reinforced, which then enhances the protection of the rights of policy holders resulting into the building of confidence in the insurance sector and the promotion of financial inclusion.

But change is on the way. Insurance AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

Such differences should not be justifiable especially in countries of the same regional block given the effect on the creation of a single and large insurance market. This would otherwise have greatly promoted financial inclusion through the widening of the spectrum of insurance products and services that are available for consumers.

The creation of a single and large insurance market cannot be achieved through a sudden breakthrough but through a gradual process, which involves the harmonisation of insurance laws and regulations of different jurisdictions while taking cognisance of the country by country specificities. A number of regions have taken a positive step towards the harmonisation of their insurance laws and regulations. For instance, the East African Community (EAC) States are working towards the harmonisation of their local insurance laws and regulations using the Insurance Core Principles (ICPs) as a benchmark.

The ICPs provide a globally-accepted framework for the supervision of the insurance sector.

Through harmonisation, local insurance laws are greatly reinforced, which then enhances the protection of the rights of policy holders resulting into the

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African Insurance Organisation

building of confidence in the insurance sector and the promotion of financial inclusion.

Furthermore, harmonisation of insurance laws and regulations promotes regulatory and supervisory convergence, which provides a level playing field for all regulated institutions in a given region, through the alignment of regulatory standards. This goes a long way towards enhancing cross-border cooperation and coordination amongst insurance regulators and insurance players due to commonalities that would then exist in the insurance laws and regulations across a given region.

Existing barriers that would affect financial inclusion would also be eliminated through the harmonisation of insurance laws and regulations.

To note, some jurisdictions may require

such barriers will be eliminated.

The future should indeed provide exciting times for consumers of insurance services after the harmonisation of insurance laws and regulations is concluded, since consumers will have more available insurance products and services to choose from.

The process of harmonisation should be undertaken in such a way that it does not result in excessive administrative burdens and costs for insurance players, which would then discourage entry into the insurance market place thus affecting financial inclusion in the long run.

The future should indeed provide exciting times for consumers of insurance services after the harmonisation of insurance laws and regulations is concluded, since consumers will have more available insurance products and services to choose from. This would then greatly accelerate the growth and development of the insurance sector and in return provide a favourable platform that would promote the financial inclusion agenda.

a specified percentage of local ownership or employment for citizens. This affects investment in the insurance sector. There could also be restrictions and tax implications related to receiving insurance premiums or paying insurance claims cross-border, which also affects financial inclusion. Through harmonisation, the expectation is that

WITH AN INTERNATIONAL PEDIGREE. ABOUT OUR BUSINESS •

• • • •

Local Ugandan Insurance Company supported by International Reinsurers - ensuring our clients are safe with us.

Goldstar has consistently held a Solvency Ratio in excess of 1000% Liquidity Ratio (Cash Cover) in excess of 350% Global Credit Rating A+ ISO 9001:2008 Certified by URS

OUR FINANCIAL HIGHLIGHTS Over The last 5 years

80% 71%

70%

70%

71%

70%

67%

60% 50% %

39%

40% 33%

35%

32%

29%

30% 20%

15%

12%

14%

11%

11%

10% 0% 2012

2013 U/W Profit : Premiums

2014 Loss Ratio

2015

2016

Reinsurance Ratio

6th Floor, Crane Chambers, Plot 38 Kampala Road. P.O.Box 7781 Kampala Telephone: +256 (0) 414 250 110, +256 (0) 414 250 111, +256 (0) 414 343 704 Fax: +256 (0) 414 254 956 Email: goldstar@goldstarinsurance.com W: www.goldstarinsurance.com F: Goldstar Insurance Company

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AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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African Insurance Organisation

Pictorial: 43rd Conference & Annual G

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AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

eneral Assembly in Morocco

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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African Insurance Organisation

Ensuring Insurance Success Four operational-focused issues that will spur insurance business growth if attended to

By Faith Ekudu, Public Relations and Advocacy Officer, Uganda Insurers Association

A

lthough the majority of insurance businesses in Uganda fall squarely in the category of General Insurance accounting for on average 70% of the total premium generated, general business has grown at an average rate of 17% over the past five years - 12% lower than Life insurance grew over the same period.

This seems to indicate that higher growth rates do not necessarily translate into higher premium written and could, to some extent, indicate the need to further push for the appreciation of life business to raise contributions to the industry’s overall performance. It further raises questions as to what Insurance companies can do to increase their rate of growth and continue to remain relevant to the markets that they serve. Here are some options:

Customer centric versus Generic Products For a long time, insurers have been accused of providing products that don’t suit the market and of failing to answer the basic questions consumers seem to be asking, “What is in it for me?” As a result of this disconnect, there really isn’t that much variation in the products provided and a consumer is forced to choose based on word of mouth recommendation, the insurers’ reputation, proximity to insurer and possibly that company’s advertising/ marketing spend.

50

An insurance official speaks to students about insurance during a sensitisation exercise.

Solution: Investing in people and developing products for this market. The cost of product and market development is undeniably high and yet there isn’t a firm guarantee that the market will respond positively. But when compared to the cost of stagnating and “getting by,” this is something that companies should pay keen attention to.

Consumer education versus increased access to services Finding the exact positioning for consumer awareness is very much like answering the question; “which came first; the chicken or the egg?” Is there such a thing as enough or too much

consumer awareness? Not at all. Should you therefore, as you educate, invest in getting your services closer to your clients? Absolutely.

Does it matter which one you do first?

Definitely. Education is the basis on which we make our decisions - whether it’s formal or informal. It is also an ongoing process and so resources need to be continuously assigned to this.

Traditional versus out-ofthe-box marketing and distribution The discussion about the right mix in both convincing the consumer to

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

purchase and how to effectively get your product to them can go on for eternity.

For markets such as ours, which while embracing technologies such as mobile telephony and mobile money platforms, still remain skeptical about the majority of financial service providers, the question is, ‘is there an absolute or is there a middle ground between traditional and out of the box marketing and distribution?

Solution: Blend, blend and blend. The truth is, our consumers go through the entire buying cycle- growing from ignorance, to awareness, to acceptance and appreciating (usage) and then if we are not careful, they outgrow us and our services and cease to purchase.

do not, that we have programs in place to acquire the skills we need.

As an industry, we talk about the consistent growth of life insurance but we have only a handful of qualified actuaries, or of agriculture insurance being the next big area, but we similarly only have a handful of qualified agronomists to propel us to where we need to be.

In addition to the Insurance Institute

of Uganda developing programs to improve on the skilling and professionalization of this industry, as companies, time needs to be spent on determining the specific areas of training that need to be worked on in order for us to effect change and growth.

In conclusion, these are just four of a multitude of issues that should be handled in order to spur growth both at company and industry level.

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It is important that this mix is consistently looked at to ensure that we keep 95 the consumer interested and keep our services relevant in order to achieve sustainable growth and profits.

75 Anticipate the consumer’s needs; do not be reactionary. Situations and needs change; you should be able to quickly adapt as well. Set very clear goals and 25of the ways to measure the success strategies employed. If it isn’t working, change it. One of life’s certainties is 100 5 its uncertainty; things and situations change, so should you in order to stay ahead.

95 0

95

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Skilling and opportunities for 75 employment

Our clients have challenges...

Together, we create and implement solutions that help you protect your future and thrive.

The insurance industry in Uganda currently employs an estimated 2,750 people of whom about 1,300 are agents.

Penetration still stands at less than 1%, 25 which presents an over 95% potential market situation.

INSURANCE BROKING and RISK MANAGEMENT solutions DESIGNED, DEFINED, AND DELIVERED.

5

The question we need to ask ourselves is what our greatest growth areas are and how to equip ourselves0 to serve our current and future markets.

Solution: Skills mapping to ensure that we have the relevant skills and where we

0 95

75

25 5

MARSH UGANDA LIMITED Africa’s pre-eminent Insurance Broker and Risk Advisor Tel: + 256 312 302 851 or + 256 414 222 217 Email ContactUganda@marsh.com | www.africa.marsh.com

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

Insurance Advantage (Vertical)_151116

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African Insurance Organisation

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ARS

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

State of Insurance in Africa Apart from South Africa, African Life insurance markets are very small with only five other countries reaching a market size of more than US$ 500 million in 2014.

By Our Reporter

Compared to the global average in emerging markets, insurance industry penetration in Africa is still low but prospects show that this presents a big opportunity for investors in the sector. Indeed, many countries have a penetration of less than 1 per cent of gross domestic product (GDP) - below the global emerging markets average of 2.7 per cent in 2014.

A

ccording to the Africa Insurance Barometer report for 2016, new product developments in life insurance, medical care, agriculture or micro-insurance, as well as a growing middle class, may help close the gap.

But, given their need for specialist risk management capabilities and high quality security, large and complex risks are still ceded to foreign insurance markets that are already developed, thus causing a lot of premium flight out of the African countries.

The report, released last year, says Africa’s economic boom, which is well above the global average, are the region’s most significant strengths.

The market’s robustness has improved noticeably, mainly due to tighter regulation, but also benefiting from enhanced distribution of insurance products driven by the growing success of bancassurance and mobile phone distribution.

2014 totaled US$ 69 billion, down from US$ 72 billion in 2013. Life insurance accounted for about two thirds of the 2014 total, with the remainder going to Non-Life insurance. With a share of 71 per cent of total premiums in 2014, South Africa dominates the African insurance market. In Life insurance, South Africa’s share of the total market was 87 per cent, while Non-Life insurance contributed 40 per cent.

African insurance premium volume in

In 2014, African Life insurance premi-

Insurance experts answer questions during the 43rd AIO conference in Morocco last year.

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

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African Insurance Organisation

ums stood at US$ 45.8 billion, translating into a Life insurance penetration rate of 1.9%, significantly below the global average of 3.4%. At an inflation adjusted real growth rate of 1.6%, African Life insurance also grew much slower than global Life insurance premiums, which increased by 3.4% in 2014.

With the exception of South Africa, African Life insurance markets are very small with only five other countries reaching a market size of more than US$ 500 million in 2014. Among the nine largest Life markets in Africa, Ghana, Kenya and Morocco have enjoyed very strong growth. Élaboré par

In Uganda, life Insurance premiums continued to grow relatively much faster at a rate of 35.67 per cent in 2015 while Non-life and HMOs grew by 21.47 per cent and 0.26 per cent respectively. The proportion of life insurance premiums in total premiums grew from 13.7 per cent in 2014 to 16.34 per cent in 2015. This is attributed to the effective separation of the hitherto composite companies, increase in private sector credit (credit life), product innovation, aggressive marketing by individual companies, among others.

A key frontier for growth in insurance in Africa lies in the micro insurance products, which have largely helped to increase the scale of insurance by offering affordable products for the low income earners.

African economies have largely been affected by the global economic developments, which have a trickle-down effect on the economies mainly because of their association with global economies. A continued economic slowdown of Sub-Saharan Africa’s main trade partners - China and Europe - as well as a further appreciation of the US dollar, has had an adverse impact on economic growth prospects. Additionally, terrorism and political instability discourage foreign investors, leadMarket Survey ing to serious fiscal and growth-related risks.

AFRICA INSURANCE BAROMETER 2016

The International Monetary Fund economic forecasts a 3.5% growth rate forecast for 2016 and 2017, and medium- to long-term prospects for most African countries remain positive, supported by higher disposable income of the rising middle class, strengthening and diversifying economies as well as improving demographics.

A key frontier for growth in insurance in Africa lies in the micro insurance products, which have largely helped to increase the scale of insurance by offering affordable products for the low income earners.

Prepared by

Étude

BAROMÈTR DE L’ASSURA A

Low penetration explained Experts argue that insurance in Africa has suffered from capacity challenges largely caused by shortage of skilled and experienced insurance professionals, lack of awareness of the benefits of insurance products, excessive competition and insufficient product differentiation.

The Insurance Barometer notes that the projected GDP growth rates of 4

54

have a negative impact on short- and mid-term growth.

per cent and 4.7 per cent for 2016 and 2017 respectively, near-term economic prospects for Sub-Saharan Africa remain very favourable, although there are a number of significant risks. Large fiscal and current account deficits leave some countries vulnerable to a potential reduction in external financing. The implementation of tighter fiscal policies, as already observed in countries like Nigeria, could

According to the Landscape of Micro-insurance Africa report 2015, the total micro-insurance market in the Africa region amounted to almost $ 647 million in premiums in 2014.

Indeed, available data shows that the insurance industry in Africa is a big opportunity for investors.

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

Developments in Uganda’s Insurance Industry

While the Insurance Industry has grown in leaps in recent years, the future looks even brighter thanks to new innovations and interventions

By Mariam Nalunkuuma, Communication Officer Insurance Regulatory Authority of Uganda

U

ganda’s insurance industry has recorded positive growth supported by relatively stable macro-economic conditions, a favorable investment climate, and economic growth.

Premiums for both non-life and life insurance have continued to grow from a mere Ushs 296.83bn in 2011 to Ushs 611.13bn in 2015, driven by the increasing public trust and increased awareness of the importance of insurance.

Key developments that could spur the Industry to further growth in the short term include:

schemes, and private commercial health insurance schemes, through which residents will enroll at the same time.

The intention is to ensure financial access to affordable, equitable and quality healthcare services progressively to all residents in an efficient manner, to protect families from catastrophic health expenditures, improve quality of health care services through pooling contributions and risk sharing, and to give the community/consumers a voice as well as ensure that they actively participate in health care service delivery.Â

Banc Assurance National Health Insurance Scheme The Government through the Ministry of Health plans to introduce a National Health Insurance Scheme (NHIS) for all residents.

For its implementation, the draft NHIS Bill of 2014 provides for three sub-schemes: social health insurance scheme, community health insurance

In Feb 2016, the Ugandan Parliament passed the Financial Institutions Amendment Act paving way for the rollout of banc assurance - the sale of insurance products by commercial banks - as a way to increase insurance penetration.

While financial sector regulators are still working out the modalities for its implementation, it is expected that it will enhance revenue growth, diversify channels for sale of insurance

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

products, offer quality customer care, ensure quicker geographical reach and create brand equity.

Oil and Gas Co-insurance Syndicate As Uganda gears up for oil and gas production, 17 local insurance firms have teamed up to underwrite risks in the multibillion dollar sector. The Oil and Gas Co-Insurance Syndicate will be managed by Uganda Re Insurance Company Limited.

According to Uganda Re- CEO Ronald Musoke, local insurance firms will underwrite risks worth about 10% of the insurance business in the sector at the start, while the remaining business will be taken up by established foreign firms.

Uganda hopes to start oil production in 2020.

Risk-based Supervision

Recently, the Insurance Regulatory Authority of Uganda (IRA) shifted from compliance-based supervision to riskbased supervision to ensure that insurance

55

African Insurance Organisation

players maintain adequate capital levels to meet risks they face while allowing the regulator to do a lot more with supervising of riskier industry players. This is intended to make the local insurance industry as strong as insurance industries in other countries around the world.

Micro Insurance Products

IRA, the Insurance Industry regulator, is now issuing operating licenses to companies intending to sell micro insurance products to consumers. This is intended to ensure that low income earners, who often forgo insurance because of the high costs, can have an affordable option to mitigate risks. The move is to increase the uptake of insurance services in the country and boost penetration.

Agriculture Insurance

In 2013, a number of insurance firms in the country unveiled the first ever agriculture insurance products to protect farmers in the event of loss of crops or livestock.

Currently, agriculture insurance is being offered in two packages: Livestock All Risks Mortality (ARM) Insurance, and Crop Indexed Insurance. More than 70% of Uganda’s population is engaged in the agriculture sector, which makes it a key component of the country’s development proceess.

Online document processing

As digital advances transform a range of industries, Uganda’s insurance industry appears determined not to be left behind.

56

Since 2013, the insurance industry has been slowly embracing Information and Communication Technology starting with online application for operating licences for agents, and later brokers and insurers.

This was intended to reduce the number of days it takes for agents to get licences from as long as two months to less than a week. The new platform was also intended to reduce the use of paper in the ap-

plication for licences, thus reducing operational costs.

But this is not the only initiative that the industry has come up with. The regulator is currently urging insurers to come up with products that can be sold online, widening on distribution channels across the country, and developing products that meet customer demands, among others. This also includes settling claims online.

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GENERAL INSURANCE

LIFE ASSURANCE

ICEA GENERAL INSURANCE COMPANY LIMITED Rwenzori Courts, 1st Floor, Plot 2&4A Nakasero Road P. O. Box 37834 Kampala-Uganda Telephone:

ICEA LIFE ASSURANCE COMPANY LIMITED Rwenzori courts, 2nd Floor Plot 2&4A Nakasero Road P.O. Box 33953, Kampala Uganda Telephone:

0414 250 719, 0414 347 535, 0414 341 495, 0312 260 645, 0717706700

0414 232 337, 0414 349 183, 0414 235 020, 0759 232 337, 0717 706 701

ASSET MANAGEMENT

ICEA ASSET MANAGEMENT Rwenzori courts 2nd Floor Plot 2&4A Nakasero Road P. O. Box 33953, Kampala Uganda Telephone: 0414 232 337 OR 0759 232 337

www.icea.co.ug

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

Uganda’s top 8 Must-visit Tourist Destinations

By Pamela Abonyo, Head Corporate Communications, NIC HOLDINGS Ltd,

Uganda is truly gifted by nature, with friendly people and a diverse landscape ranging from the snowcapped Rwenzori Mountains to the immense Lake Victoria, while the abundant wildlife includes chimpanzees as well as rare birds. Such diversity leaves one spoilt for choice. But don’t worry; we put together a list of places you must visit in this beautiful country whether you are here on a short trip or a longer period of time. This list is in no particular order of importance.

for four Kabakas (Kings of Buganda Kingdom), and it has been described as one of the most remarkable buildings made with purely vegetable materials in the entire Sub Saharan Africa. Though some of the buildings got destroyed by fire in 2010, it still makes for a great trip in case you are pressed for time.

3. Lake Mburo National Park

Originally gazzetted in 1930, it was upgraded to a game reserve ion 1963. Lake Mburo National Park is conveniently located close to the high way and is a great starting point if you plan on visiting some of the major national parks in the western part of Uganda. Though it is the smallest of the Savannah parks, it is bordered by five lakes, it is also home to over 350 bird species and mammal species such as zebras, impalas, eland, buffalo, oribi, defassa water buck, leopard, hippo among others.

The Government recently introduced giraffes in the park.

4. Queen Elizabeth National Park

1. Kidepo Valley National Park Kidepo Valley National Park is considered to be the most remote national park in Uganda. It can be reached by air or road. Located in Kabong District in north eastern Uganda in the Karamoja region, Kidepo is a true gem.

The long trip is totally worth it with magnificent views of the semi-arid lands and it’s abundance of wild life.

The park hosts over 77 mammal species including lions, giraffes, elephants and zebras. Bird watchers are not left

out as the park has over 475 bird species.

2. Kasubi Tombs Located in the capital city Kampala, the Kasubi Tombs were made a UNESCO World Heritage Site in December 2001. The tombs are the burial site

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

Queen Elizabeth National Park is one of the most popular destinations in Uganda. Located in South West Uganda, it is set against the backdrop of the jagged Rwenzori Mountains.

The park has magnificent views and a diverse ecosystem and even more diverse species such as big game primates and over 600 bird species.

5. Murchison Falls National Park Murchison Falls is the largest park in Uganda. It is bisected by the White

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African Insurance Organisation

Nile and is named after the eye-catching waterfalls located in the northern region of the Albertine Rift valley. It offers a wide range of nature’s glory from waterfalls to forests. Budongo Forest, located in the park, is one of the most intensely-studied working forest. The park has over 76 species of mammals including Uganda’s largest population of Nile crocodiles and 450 bird species.

get the rich history of the magnificent facility.

8. Jinja Town

Located in the Eastern region of Uganda and sitting along the Northern shore of Lake Victoria near the source of the River Nile, Jinja is the ideal town for the adrenaline junkies as well as family friendly fun.

With activities such as white water rafting, tubing the Nile, kayaking and canoeing to zip lining and bungee jumping.

Family fun activities such as wildlife and nature tours to visiting the Bujagali Falls

and the Source of the Nile, Jinja surely caters for all.

Uganda, truly the Pearl of Africa, offers much more than these recommendations. These are simply a guide to begin your adventure in the ever green country where the River Nile begins it long journey to the Mediterranean Sea. For more information on the other breath taking places in Uganda, visit www. visituganda.com.

6. Bwindi Impenetrable National Park Bwindi was initially designated as an animal sanctuary in 1964 but later gazzetted to national park status in 1991, only to be inscribed onto the world heritage list in 1994. Lying at the edge of the Rift Valley in South Western Uganda, this is one of the oldest and most biologically diverse rain-forests in the world. The most special thing about the park is that it hosts an estimated 320 Mountain Gorillas roughly half of the world’s population.

Several groups of these gorillas have been habituated for tracking, which is one of the most rewarding experiences that one could do in their life time.

7. Gaddafi Mosque

Located in Kampala on Old Kampala hill, the Gaddafi Mosque was completed in 2006, as a gift from the late Libyan President Muammar Gaddafi. The mosque is richly decorated with high ceilings and beautiful chandeliers and spiraling stairs. It boasts of arguably the best panoramic views of Kampala.

Be sure to get a guided tour so as to

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AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

Entertainment Crew

Function Venue Entertainment Monday 22nd May 2017 Official opening of Speke Resort ball room Ndere troupe the conference Munyonyo AFRICA RE dinner

Lake Victoria Hotel Serena Kigo Tuesday 23rd May 2017 ZEP RE Speke Resort Munyonyo Lakeside Wed 24th May 2017 Gala Dinner

Kampala Serena Hotel

Afrigo Band

Crane performers, Isaiah Katumwa, Lillian Mbabazi, Sundowners band.

Fusion band and Iryn Namubiru Joseph Mayanja (Chameleone)

African Insurance Organisation

AIO Local Organising Committee Alhaj Kaddunabi Ibrahim Lubega

Chairman

Mr. Deepak Pandey,

Deputy Chairman

Mr. Sande Protazio

Over all coordinator

Ms. Miriam Magala

UIA

Mr. Maurice Amogola

UAIB

Mr. Saul Seremba

IIU

Mr. Joshua Kasami

UIAA

Subcommittee Chairpersons Mr. Azam Tharani

Finance

Mr. Ronald Musoke

Logistics

Mr. Ronald Zaake

Entertainment

Mr. John Cohen Arinaitwe

Security

Ms. Latimer Mukasa

Transport

Ms. Grace Kiwanuka

Health and Safety

Mr. Paul Muhame

PR, Media and Events Management

Hajjat Sebyala Aphwa

GALA Dinner

Ms. Mariam Nalunkuuma

Secretary/Coordinator

Others Mr. Ivan Kilameri

Member, Organising committee

Ms. Faith Ekudu

Member, Organising committee

Mr. Innocent Opio

Member, Organising committee

Ms. Mariam Mutibwa

Member, Organising committee

Mr. Paul katabalwa

Member, Organising committee

Mr. Musa Lukwago

Member, Organising committee

Ms. Byona Jessica

Member, Organising committee

Lt. Col. Mango Baraza

Member, Organising committee

Mr. Goodman W. Mwesigye

Member, Organising committee

Mr. Bernard Mutabazi

Member, Organising committee

Ms. Elaina Ddungu

Member, Organising committee

Mr. Ariong Oskol

Member, Organising committee

Ms. Noella Tino

Member, Organising committee

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AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

Appreciation The African Insurance Organisation Local Organisation Committee wishes to extend their thanks to the Local industry franternity whose support has enabled the successful hosting of the 44th AIO Conference and General Assembly in Kampala from 21st -24th May 2017.

INSURERS

2

ICEA Life Assurance Company Limited.,

a.

Non-Life insurance companies:

3

Liberty Life Assurance Uganda Limited.,

1

Alliance Africa General Insurance Limited.,

4

Metropolitan Life Uganda Limited

2

APA Insurance (Uganda) Limited.,

5

NIC Life Assurance Company Limited.,

3

Britam Insurance Company (Uganda) Limited.,

6

Prudential Assurance Uganda Limited

4

CIC General Insurance Uganda Limited.,

7

Sanlam Life Insurance Uganda Limited.,

5

East African Underwriters Limited.,

8

The Jubilee Life Insurance Company of Uganda Limited;

6

Excel Insurance Company Limited.,

9

UAP Life Assurance Uganda Limited;

7

First Insurance Company Limited.,

c.

Re-Insurance Company

8

GoldStar Insurance Company Limited.,

1

Uganda Re-Insurance Company Limited,

9

ICEA General Insurance Company Limited.,

HEALTH MEMBERSHIP ORGANISATIONS (HMOS)

10

Lion Assurance Company Limited.,

1

AAR Health Services (U) Limited,

11

NIC General Insurance Company Limited.,

2

Case Medcare Limited,

12

NOVA Insurance Company Limited.,

3

International Air Ambulance

13

Pax Insurance Company Limited,

4

International Medical Link (U) Limited,

14

Phoenix of Uganda Assurance Company Limited.,

5

Kampala International Medical Centre

15

Rio Insurance Company Limited.,

6

St. Catherine’s Clinic

16

Sanlam General Insurance (Uganda) Limited.,

INSURANCE BROKERS

17

Statewide Insurance Company Limited.,

18

The Jubilee Insurance Company of Uganda Limited.,

19

TransAfrica Assurance Company Limited.,

20

UAP-Old-Mutual Insurance Uganda Limited.,

b.

Life insurance companies

1

CIC Africa Life Assurance Limited;

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

a.

Reinsurance Broker

1

Guardian Reinsurance Brokers Limited.,

b.

Insurance Brokers

1

Abacus Insurance Brokers (Uganda) Limited.,

2

African Risk and Insurance Services Limited.,

3

AON Uganda Limited.,

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African Insurance Organisation

Universal Galaxy Insurance Brokers Limited.,

4

Assured Partners Insurance Brokers Limited.,

35

5

Avenue Insurance Brokers Limited.,

6

AYO Uganda Limited.,

LOSS ASSESSORS, ADJUSTERS, INSURANCE SURVEYORS, RISK MANAGERS

7

Ball Pack Insurance Group Limited

a.

Loss Assessors:

8

Bartlett Africa Limited,

1

ADR Limited.,

9

BTB Insurance Brokers (U) Limited.,

2

Bengal Trading Company (U) Limited.,

10

BS Insurance Limited

3

FOX Loss Assessors.,

11

Chancery Wright Insurance Brokers (U) Limited.,

4

Insurance Loss Ajusters and Risk Managers.,

12

Clarkson Insurance Brokers Limited.,

5

Intertech Global Assessors Limited.,

13

Covermark Limited.,

6

Proba Services.,

14

Eagle Africa Insurance Services (U) Ltd.,

7

Protectors International Limited.,

15

Expert Insurance Brokers Limited.,

8

Uprise International Limited.,

16

Five Star Insurance Services Limited.,

b

Loss Assessors & Insurance Surveyors:

17

Gras Savoye Uganda Insurance Brokers Limited.,

1

Aliwali Diamond Engineers.,

18

Hillcrest Company Limited.,

2

ASK Corporate Counsultants Limited.,

19

H.S Jutley Insurance Brokers (U) Limited.,

3

Five Motors (U) Limited.,

20

Interlink Insurance (Africa) Limited.,

4

S-M Cathan,

21

Interstate Insurance Services Limited.,

5

Specialised Safety

22

Kiboko Financial Services Limited.,

6

Zolm International Limited.,

23

Legacy Insurance Services Limited.,

7

Uganda Global Survey Limited;

24

Liaison Uganda Limited.,

c.

Loss Adjuster:

25

Marsh Uganda Limited,

1

General Adjusters Limited.,

26

Milvik Uganda Limted,

2

Claim Care Uganda Limited.,

27

Neon Inc Limited.,

d.

Loss Adjusters & Insurance Surveyor:

28

Padre Pio Insurance Brokers Limited.,

1

Multiple Consult Network Limited.,

29

Pentad Insurance Services Limited.,

2

Vericlaims and Properties Limited.,

30

Radiant Insurance Brokers (2009) Limited,

Loss Assessors and Insurance adjustor

Solace Limited,

e

31

Elit Liability Management Limited.,

Sun Africa Insurance Services Limited.,

1

32 33

Sun Bridge International Insurance Broker Limited.,

f

Loss Assessors, Insurance Surveyors and Risk Managers:

34

The Intercontinental Insurance Brokers Limited.,

1

McLarens Uganda Limited.,

62

AIO AFRINSURANCE MAGAZINE | Kampala - Uganda, May 2017

After 40 years of service and commitment to Africa, we have become a: • Reputable Pan-African brand with international standards • Financially strong security with high credit rating • Reinsurer close to our markets through our network of offices across Africa • Diversified shareholding / ownership structure • Diverse & experienced human capital

www.africa-re.com

Insurance Regulatory Authority of Uganda Insurance for Safety

Protection

Prosperity

Knowledge

Growth

VISION A Vibrant and secure insurance industry.

MISSION To create an enabling regulatory environment for sustainable growth of the insurance industry while upholding the international best practices.

Plot 5 Kyadondo Road | Legacy Towers | Block B, 2nd Floor P.O.Box 22855, Kampala Uganda Tel : +256 414 346 712 / 0414 253 564 | Toll Free: 0800 124 124| Email: ira@ira.go.ug | website: www.ira.go.ug