Uganda’s insurance sector players have been urged to move beyond boardroom concepts and pilot projects and transform innovations into practical, accessible solutions that deliver real impact in the everyday lives of policyholders.
During the recently held 2026 Insurance Innovation Awards Gala in Kampala, government and industry leaders emphasised that the true measure of innovation is not creativity, but its ability to deliver accessible, reliable, and customer-focused services.
With insurance penetration still below 1% despite steady industry growth, the call challenges insurers to translate innovation into everyday value, boost trust, expand coverage, and position insurance as a practical safety net for all Ugandans.
Uganda’s insurance industry has posted notable growth in recent years, signaling rising confidence and expanding market activity. However, penetration remains low, pointing to the need to ride on innovations to close the protection gap.
According to finance state minister, Henry Musasizi, gross written premiums (GWPs) increased from UGX1.18 trillion (about US$315 million) in 2021 to UGX1.76 trillion (approximately US$480 million) in 2024, representing a 49.2 % growth.
Claims pay-outs also rose from UGX622.2 billion (about US$166 million) to UGX813.2 billion (about US$217 million) over the same period, reflecting a 30.7% increase. Over the same period, industry assets grew to over UGX1.037 trillion (approximately US$276.5 million).
Although these figures point to a sector gaining strength, beneath the progress lies a persistent structural weakness of low penetration.
“Insurance penetration, although it has grown from 0.8% in 2021 to 0.88% in 2024, is still low compared to regional peers such as Kenya, where penetration stands at about 2.4% ,” Musasizi noted.
This gap, he said, is not merely statistical. “It represents millions of individuals and businesses operating without financial protection against risks, from health emergencies to business disruptions. Therefore, for policyholders, this means vulnerability. For insurers, it signals an untapped opportunity,” he said.
Digital transformation
Beyond penetration, concerns about delayed or unpaid claims continue to affect public confidence in insurance business. Industry leaders acknowledged that improving claims processes is not optional, it is fundamental to rebuilding trust.
Keto Kayemba, Insurance Regulatory Authority (IRA) board chairperson, emphasised that insurance, at its core, is a promise that must be honoured in practice and not just in policy documents.
“This promise only matters if insurance stays relevant, accessible, and responsive to people’s real needs,” she said.
She warned that innovation cannot be confined to awards or experimental projects. Instead, she said it must translate into products that people actually use and trust in their daily lives.“The real success is when innovative products become part of everyday life, embedded in daily transactions and trusted by ordinary citizens,” she emphasised.
A dominant theme during the awards Gala was the central role of technology in reshaping the insurance landscape. IRA chief executive officer, Alhaj Ibrahim Kaddunabbi Lubega highlighted that globally, the industry is undergoing a profound shift, with the insurtech market projected to grow from about US$35 billion in 2024 to over US$300 billion by 2036.
He emphasised that digital transformation is not optional but necessary and added that “The future of insurance is digital, data-driven, and deeply customer-centric.”
In Uganda, this transformation is already underway. Mobile-based insurance, digital policy distribution, and automated claims systems are beginning to redefine how services are delivered.
Sande Protazio, the director of strategy and market development at IRA described how technologies such as artificial intelligence, big data analytics, and the Internet of Things (IoT) are improving underwriting accuracy, detecting fraud, reducing operational costs and reshaping customer experience.
“When customers can purchase policies through mobile platforms, submit claims digitally and track their coverage in real time, insurance becomes simpler, more transparent and more accessible,” Protazio explained.
For insurers, he said the implication is unavoidable. They either have to invest in digital systems or risk becoming irrelevant. On the other hand, Protazio said the shift promises convenience for policyholders, with insurance that can be accessed anytime, anywhere, without the need for physical branches.
Inclusive innovation
While technology is critical, the IRA stressed that innovation must ultimately be judged by its inclusiveness. Kaddunabbi challenged the sector to ask whether it is doing enough to serve all Ugandans, particularly those in rural and informal sectors.
“True innovation is not only about new technologies or sophisticated products. It is about relevance. It is about designing solutions that meet people where they are. This includes farmers, boda-boda riders, and small business owners—groups that form the backbone of Uganda’s economy but remain largely uninsured,” he said.
In addition, Kaddunabbi said microinsurance emerges as a key solution that offers affordable, simple, and accessible products that can extend coverage to low-income households.
Regulatory framework and partnerships
According to Musasizi, the government has already put in place regulatory frameworks to support this shift, including microinsurance regulations and policyholder protection mechanisms. He urged the industry to expand insurance solutions, leverage technology, and design customer-centric products that build trust and promote inclusion.
During the awards gala, sector experts also noted that innovation in insurance requires strategic collaborations across the ecosystem. They said that no single player can drive transformation alone.
Protazio noted that many insurtech start-ups have promising ideas but lack the resources or regulatory pathways to scale. “This makes partnerships essential across the ecosystem for insurers, regulators, technology firms, and financial institutions,” he said.
Additionally, he said, “By partnering with start-ups, supporting innovation ecosystems and investing in digital capabilities, insurance companies can accelerate their own transformation while helping promising innovations reach the market.”
Kayemba also echoed this, emphasising that successful innovation depends on strong partnerships, fair pricing, customer education, and early engagement with regulators.
From compensation to prevention
Another idea that emerged from the discussions during the Gala was a shift in the very role of insurance, from compensating losses to preventing them.
Protazio explained that emerging technologies now enable insurers to identify risks early and help customers manage them proactively.
“Through satellite imagery, smart sensors, connected devices and predictive analytics, insurers can identify risks earlier and support customers in managing them proactively,” he said.
He highlighted that this shift has profound implications. For policyholders, he said it means fewer losses and greater security. For insurers, Protazio said it reduces claims costs and strengthens long-term sustainability.
“It also redefines the relationship between insurer and customer, from reactive to proactive, from transactional to supportive,” he added.
Expanding reach
Despite digital advances, Musasizi said physical presence and human capacity remain important developments. He called for expanding regional presence to improve access across the country, as well as strengthening institutions like the Insurance Training College of Uganda (ITC).
He also emphasized the need to increase insurance uptake among small and medium enterprises (SMEs), which are critical to economic growth but often lack adequate protection.
At the same time, he revealed that the government is finalising additional regulations, including those related to bancassurance and policyholder compensation, to strengthen the regulatory environment.
“These efforts aim to create a more supportive ecosystem for innovation while safeguarding consumers,” he said.
The insurance sector is also being positioned as a key player in Uganda’s broader development agenda. Musasizi pointed to opportunities in major national projects, including infrastructure developments like the Standard Gauge Railway (SGR), as well as programmes like the Parish Development Model (PDM) and agriculture.
“We want to see insurance playing a bigger role in national programmes. This will ensure greater policyholder satisfaction and enable more Ugandans to benefit from financial protection, financial inclusion and economic empowerment,” he said.
Innovation awards
During this years’ innovation awards, 72 participants, including insurance agents, brokers and media personalities tussled it out for the accolades. However, while the Insurance Innovation Awards celebrate excellence, leaders cautioned against viewing them as an endpoint.
Kayemba stressed that awards should serve as a starting point for scaling solutions that deliver real impact. “Winning an award is not the end goal; it is only the beginning,” she said.
Dr. Kaddunabbi reinforced this, noting that innovation must be owned at the highest levels of organisations and embedded into core strategy.
“Over 70% of insurance CEOs say innovation and digital transformation are their top strategic priorities. The challenge now is execution, turning ideas into scalable, impactful solutions,” he said.
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