This growth is driven by increased public confidence in insurance, improved distribution, improved loss resolution, the introduction of digital solutions, and the growing need for financial security among private and corporate clients.
Experts attribute the success to the development of the life insurance segment, which was previously inferior to general insurance (non-life) in Uganda. Life insurance premiums increased by an exceptional 39.21% to 977.60 Ush billion in 2025 from 702.25 Ush billion a year earlier, almost equaling non-life insurance, which generated 1.002 Ush trillion with an increase of just 1.53% from 986.48 Ush billion in 2024. The changing market structure indicates a significant shift in consumer behavior: more and more Ugandans are beginning to value insurance not only as protection against unforeseen losses, but also as an important tool for financial planning and capital preservation.
In 2025, life insurance accounted for 48.31% of total premiums (versus 39.81% a year earlier), while non-life insurance accounted for 49.49% (versus 55.92% in 2024). The narrowing of the gap suggests that the Ugandan insurance market is gradually moving towards a more balanced structure, similar to developed markets, where life insurance plays a dominant role in mobilizing long-term savings. Analysts note that this trend reflects a growing awareness of retirement planning, family protection, and income security in an environment of economic instability.
The IRA attributes the steady growth of the insurance market to the influence of a number of factors. The development of banking, insurance and brokerage areas has made policies more accessible, and digital innovations have improved the quality of customer service. Thus, receipts through the bank insurance channel increased from 225.01 Ush billion in 2024 to 302.26 Ush billion in 2025, an increase of 34.33%. These figures highlight the importance of cooperation between banks and insurers to spread the insurance culture. Brokers also made a significant contribution, collecting 564.83 Ush billion in premiums, which is 31.85% more than 428.45 Ush billion in 2024. The microinsurance segment, aimed at households with limited income and small businesses, also showed growth: fees increased from 1.64 Ush billion to 7.33 Ush billion, which is 347.86%. Although this trend is still small, this dynamic indicates the promotion of financial inclusion.
In addition to the growth of premium revenues, the maturity of the industry is confirmed by the prompt fulfillment of obligations to customers. According to the IRA, insurance companies paid 934.55 Ush billion in 2025, accounting for 46.20% of total gross premiums. For comparison, 887.55 Ush billion was paid in 2024, and 820.47 Ush billion in 2023. Almost a trillion shillings have been returned to policyholders, beneficiaries, and families facing a variety of accidents, from road accidents and fires to medical emergencies. The increase in compensation amounts is often seen as a positive indicator that strengthens public confidence in the insurance system, which operates at times of greatest need.
The financial situation of the industry remained stable throughout the year. Total assets rose to 3.459 Ush trillion, reflecting insurers' growing ability to take on large risks. The sector also maintained high capital adequacy ratios: 250% for life insurance companies and 266% for non-life companies, which is significantly higher than the regulatory minimum of 200%. Digitalization has become an important driver of growth, allowing insurers to reduce costs and reach previously uninsured segments of the population.
Speaking at the 4th annual congress of the Association of Insurance Agents in Kampala, David Vandera of Absa Bank Uganda noted that the industry needs to rethink its core purpose, focusing on real protection, not just policy sales. He stressed that despite rising premiums, insurance penetration has remained at around 1% for many years, indicating a continuing structural gap between cost growth and coverage.
The outlook for Uganda's insurance industry remains positive. The regulator predicts that premium growth in 2026 will exceed 10%, which will be facilitated by stable macroeconomic conditions and government investments in infrastructure (including the standard gauge railway, preparations for AFCON, oil and gas projects and energy). Despite encouraging progress, insurance penetration in Uganda remains relatively low compared to regional and global indicators, which leaves significant room for expansion. Industry players are confident that raising public awareness, developing affordable products, and using digital technologies will be crucial factors in getting more Ugandans involved in the insurance ecosystem.
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