Microinsurance in Uganda: Tectonic Shift In The Near Future?
This Note analyzes the possible impact of regulatory and political changes on the microinsurance sector in Uganda. It also predicts the state of the sector in Uganda in the near future. The Insurance (Amendment) Act, 2011 of Uganda, has promoted an entirely new regulatory framework under the Insurance Regulatory Authority (IRA). The Note also discusses trends that the new regulatory regime might dictate, such as the establishment of a new microinsurance regime, the entry of new microinsurance players, competition, and the importance of product quality and service. Based on the assumption that the Insurance Regulatory Authority will be a strong regulator and national policies will be sincerely and effectively implemented, it predicts that conventional insurers, as well as microfinance players will soon be able to realize the strategic potential of microinsurance in their portfolio. Aspects of the new regulatory regime include:
- Regulation of insurance companies and channels;
- Opening up of bancassurance;
- Institutional regulation of microinsurance;
- Improves access to financial services;
- Improved rural economy;
- Limited health insurance coverage.