Insurance companies disbursed a total of shs727.5 billion in claims during the fiscal year ending in December 2023, as disclosed by the Insurance Regulatory Authority (IRA).
A claim denotes a formal appeal to one’s insurance provider for compensation against losses covered within the insurance policy.
Addressing attendees during the 59th CEOs’ breakfast meeting held at Serena Hotel in Kampala on Thursday, IRA CEO Ibrahim Kaddunabbi Lubega stated that this marked a 5.2% increase in claims disbursed.
“Aggregate claims paid out encompassing both life and non-life, including HMOs, constituted 45.5% of the total premiums recorded in 2023, compared to 40.25% of total premiums in 2022,” remarked Kaddunabbi.
These statistics imply that for every shs100 remitted in premiums, shs45.5% was reimbursed in the form of claims.
The Insurance Regulatory Authority CEO expressed satisfaction with these figures, asserting that they provide customers with confidence that insurance firms will honor their claims in the event of covered losses.
“Insurance firms must honor customers’ claims because failure to do so subjects us to negative perceptions. Let us view claims payment as an opportunity to validate our existence, otherwise, we risk tarnishing our reputation,” he emphasized.
According to the data, by December 2023, insurance companies had amassed shs934 billion in underwritten premiums for non-life businesses, reflecting a 4% increase from shs898.1 billion the previous year.
Meanwhile, life insurance businesses accrued shs636 billion, marking a 47% growth over the year, while HMOs underwrote shs56.36 billion, up from shs38.3 billion. Additionally, microinsurance businesses generated shs559.7 billion.
The IRA CEO conveyed optimism regarding the future outlook but urged insurance company CEOs to undertake various measures to capitalize on it.
He encouraged them to engage shareholders in further capitalization to foster market growth and consider repositioning their business strategies, among other initiatives.
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