Ugandan insurers have been asked to take a more proactive role in mitigating risks through innovation and digital transformation if they are to boost the country’s economic resilience.
The country’s permanent secretary and secretary to the treasury Ramathan Ggoobi said the industry’s potential to drive national development amid expanding exports and emerging challenges like cybersecurity and climate change will require insurers to deepen their role. He was speaking at the event to mark the rebranding of UAP Old Mutual to Old Mutual Uganda.
“As Uganda expands its export basket, now with 34 new products, demand for insurance will increase, driving higher premiums and market growth,” said Ggoobi.
Old Mutual’s rebranding is part of its continental strategy of unifying subsidiaries under a single, recognisable brand to enhance innovation and customer-focused solutions. Managing director at Old Mutual Uganda, Stephen Chikovore, described the transition as a commitment to collective progress.
“As we step into this future together, we will continue to innovate, grow and strengthen the bonds that make Old Mutual a brand built for financial wellness, prosperity and resilience,” he stated.
The call for de-risking comes against a backdrop of heightened vulnerabilities discussed at the recent Uganda Insurance Brokers Conference. Industry experts identified cybersecurity and climate adaptation as top priorities, citing over 2,000 weekly cyberattacks across Africa as a stark warning.
Digital fluency
Paul Muhame, chairman of the board for the Insurance Brokers Association of Uganda (IBAU), urged brokers to integrate technology for enhanced efficiency and client interaction.
“In this age of digital transformation, brokers must embrace technology not just for operational efficiency but also to improve client engagement,” Muhame argued.
He listed tools such as Customer Relationship Management (CRM) systems, risk profiling software, artificial intelligence-powered policy comparisons, digital onboarding, mobile apps for claims and virtual communication platforms.
“Digital fluency will enable insurers to serve clients more responsively, provide insights based on data, and deliver a better overall experience,” he explained, asking players to become “value enablers” rather than mere intermediaries.
This, he said, involves assisting clients in understanding and reducing risks before transferring them, advising on regulatory compliance and offering training on emerging threats.
Insurance Regulatory Authority of Uganda (IRA) chief executive Alhaj Kaddunabbi Ibrahim Lubega reinforced the digital imperative, expressing support for regulatory incentives for investments in digital infrastructure and partnerships to build Insurtech talent. These efforts, he said, will position Uganda as a potential regional leader in digital insurance innovation.
Innovation versus equity
Mumba Kenneth Kalifungwa, CEO of Stanbic Bank Uganda, painted a picture of an industry facing unprecedented volatility driven by four megatrends: pandemic aftershocks, climate emergencies, AI disruptions and escalating cyber threats.
He called for a “systemic reinvention” of traditional models to adapt. On AI, Kalifungwa highlighted its dual-edged nature, offering efficiencies like hyper-personalisation, automated claims processing and fraud detection, while posing ethical risks such as algorithmic bias.
To mitigate these risks, he called for insurers to adopt explainable AI frameworks and establish ethical review boards for high-impact algorithms, ensuring that innovation does not come at the cost of equity.
Kalifungwa elevated cybersecurity to a “new core competency”, urging the adoption of zero-trust architectures with encryption, multi-factor authentication and regular penetration testing. He also emphasised enforcing standards in third-party and Insurtech partnerships, alongside transparent data policies to foster trust.
Noting AI’s growing traction, he projected that about 30% of African financial providers, including insurers, will integrate the technology soon, enhancing operations through automated underwriting, chatbots and predictive analytics.
Africa’s digital economy, forecasted to reach US$712 billion by 2030, presents vast opportunities for the sector, according to Kalifungwa.
This encompasses e-commerce, fintech, digital insurance, cloud computing, and digital ID systems, enabling insurers to innovate client engagement and product design.
Regulatory Framework
Donato Laboke, head of marketing and channel development at Sanlam East Africa, called for a progressive regulatory framework that harmonises innovation with consumer safeguards.
In an era marked by digital economies, climate volatility and demographic changes, he identified Insurtech collaborations, economic, social and governance-aligned policies and inclusive microinsurance as essential for building a resilient ecosystem.
According to Lubega, a well-developed insurance sector plays a pivotal role in promoting economic growth by mobilising long-term savings, facilitating investments and enhancing financial stability. He said insurance companies are major institutional investors, channeling funds into government securities, equities and other financial instruments.
“In Uganda, more than UGX115 billion (US$31.5 million) has been invested in listed entities and more than UGX250 billion (US$68.495 million) in government securities, thereby indirectly supporting infrastructure development and stimulating private sector investment.
Uganda’s insurance penetration remains low, recorded at less than 1%. However, IRA data showed between the second quarter of 2024 and a similar period of 2025, insured individuals surged by 24.7% from 405,837 to 506,119, adding more than 100,000 lives to the safety net.
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