The insurance sector registered an increase in 2011 the Insurance Regulatory Authority of Uganda has said.
Income collected from insurance premium increased to UShs 296.44 billion (US$ 119.5m ) in the year 2011 from USHS239.99 billion (US$ 96.3m) in 2010 thus registering 23.52% growth in the industry.
During a press briefing at the Insurance Regulatory Authority (IRA) offices in Kampala recently, Mr. Ibrahim Kaddunabbi Lubega the IRA Chief Executive Officer, said the collections from non life insurance premium alone was USHS 262.24 billion (US$ 106.02m) in the year 2011 where as in the year 2010, the money collected from non life insurance premium was 216.34 billion (US$ 86.9m) making the industry register 21.21% increase.
Kaddunnabbi said out of the total premium income written, non- life insurance policies contributed 88% while life insurance was only 12%.
Kaddunabbi attributes the growth of the insurance sector to the ongoing improvement of the regulatory environment for policyholders, insurers, brokers and agents, adding that the authority has increased public confidence in the insurance sector.
"The authority has built and continues to build confidence and trust in the insurance industry by, allowing only companies that are adequate to offer protection to enter the market or continue operations so as to protect policy holders," he said.
"We have also done regional public awareness activities as workshops, television and radio talk shows on risk awareness, insurance and its benefits, insurance markets, operations and products as well as regulatory and supervisory concerns including payment of premiums and claims," he adds.
"We want to assure the public the Insurance Regulatory Authority will do all it takes to ensure that insurance companies do what they are expected to do," Kaddunabbi said.
He adds that among other things they allow primary insurance to cover underwriting risks beyond their capacity and maintain their financial stability through reinsurance.
IRA is collaborating with Insurance associations to review existing regulations and impact discipline through transparency by providing transparency and fairness in order to prevent the market from being manipulated.