The outlook of the insurance sector remains positive, with the expected commencement of commercial oil production likely to create a significant pipeline of new insurance business, according to Dr Protazio Sande, Acting CEO of the Insurance Regulatory Authority (IRA).
Speaking at a briefing earlier this month, he said that oil-related investments are expected to generate opportunities across energy, construction, engineering, marine, transport, liability, employee benefits and other commercial insurance classes.
He, however, warned that geopolitical risks in and around the Strait of Hormuz could increase the cost of insuring energy projects and related infrastructure required for commercial oil production.
For Uganda’s insurers, the coming period could therefore present both a major growth opportunity and a test of their capacity to manage increasingly complex and high-value risks.
1H2026 insurance industry performance
Dr Sande also announced that Uganda’s insurance industry reported that gross written premiums (GWP) surpassed the UGX1tn ($256m) mark in the first half of 2026.
The industry’s GWP increased by 7.68% to UGX1.094tn in the six months from January to June 2026, up from UGX1.016tn recorded during the corresponding half last year.
Dr Sande said that the growth was largely driven by the life business segment, whose premiums jumped by 30.04% to UGX524.14bn in 1H2026 from UGX403.05bn in the first half of 2025. The non-life segment’s premiums declined to UGX552.93bn in 1H2026 from UGX595.26bn recorded in the corresponding half of last year.
The life business segment premiums increased by approximately UGX121.09bn, compensating for the approximately UGX42.33bn reduction recorded in non-life premiums. The decline in premiums from the non-life segment was attributed to the amalgamation of Jubilee Health with Jubilee Life, which changed how the business was classified.
Non-life remained the largest segment of the market, accounting for 50.54% of total industry premiums. Life insurance followed closely at 47.91%. Health maintenance organisations (HMOs) accounted for 1.31%, while microinsurance represented 0.24% of the market.
Claims climb as premiums grow
The industry paid UGX500.13bn in gross claims during the first half of 2026, equivalent to 45.7% of total industry GWP, with the life insurance segment accounting for the largest share of gross claims, at UGX281.03bn.
Dr Sande said the Authority will continue monitoring claims settlement at individual company level, particularly where claims experience, complaint patterns or settlement periods point to potential weaknesses in liquidity, reserving or claims-management practices.