Insurance firms shift attention to rural folks

Spy Ghana

According the Institute’s senior executive member Maurice Amogola, much as the industry has gained reasonable growth over the years, IIU is compelled to boost awareness especially in the rural areas to interest more people into taking insurance the same way they do with banking.

Board member of the Uganda Insurance brokers Association Latima Mukasa (L), the chairman Maurice Amongola (C) receiving the Tullow Oil Uganda managing director Jimmy Mugerwa at Protea hotel last year. (Photo credit: Wilfred Sanya)

Sensitisation encompasses the role of insurance in securing life and assets, available insurance policies, players in the industry, claims settlement among others avenues related to demystifying insurance.

“Our insurance industry is running through challenges led by limited understanding and misconception of the way insurance works, thus constraining local uptake rates; therefore, IIU being a training arm of the industry, is mandated to take a lead in this countrywide awareness drive,” he said.

He was speaking on the sidelines of an event during which the institute donated beds and wheel chairs to Nkozi Hospital as one of the insurance industry rural public outreach initiatives.

Amogola noted that the industry is steadily growing and has much hope in leaning much more on IIU whose operational capacity is majorly built with the funds generated from the 0.5% training levy charged on every policy sold by insurance firms.

Recent recorded industry performance

The insurance industry grew by 30.08% in 2013 in terms of terms of written premiums; Statistics from the Insurance Regulatory Authority (IRA) indicate that gross written premiums rose to sh456.86b last year up from sh351.23b in 2012.

The improved performance was attributed to a gradual shift in public perception about the value of insurance, arising from increased public awareness, product innovation, broadening and deepening of distribution channels.

Amogola also noted that the insurance is gradually gaining public confidence routed through streamlined claims settlement processes.

Claims settled increased to sh90.7b, from sh77.89b in 2012.

Speaking during an interview, IIU executive director Elvis Khisa noted that the institute (insurance industry training arm) is building more capacity to handle issues related to developing the human resource of the industry insurance industry through continuous training as well as pushing for consistent public awareness across the country.

David Ssempijja, The New Vision