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Uganda Industry Research: Insurance
Profit in the Policies: Ugandan Insurance Sector’s regulatory changes set to improve market fundamentals, spur consolidation and longer-term penetration
Uganda’s insurance sector is amongst the most profitable markets in the sub-Saharan Africa region, notwithstanding its relatively small size of circa USD265m, due to strong enforcement of minimum rates regulations. This has fostered better underwriting profitability in the more fragile short-term industry, given rising margin pressures within the region. Performance gaps still exist however, as profits are unevenly distributed, and insurance penetration is low.
Despite comparatively strong profitability in the Ugandan short-term insurance market, there are performance gaps which present risks to the sector. Firstly, the majority of underwriting profits are concentrated to a few players. The largest insurer in the market accounted for 41% of statutory profits in FY20 (FY19: 64%; FY18: 92%).