The Insurance Regulatory Authority of Uganda (IRA) recently urged insurance companies in the country to work with microfinance institutions (MFIs) to develop and promote microinsurance products. In an effort to assist in the creation of a market for microinsurance, the government’s new regulations require that microinsurance firms have minimum capital totaling UGX 100 million (USD 30,000) instead of the usual requirement of UGX 3 billion (USD 900,000) for life insurance companies and UGX 4 billion (USD 12 million) for non-life insurers.
According to IRA CEO Alhaj Kaddunabbi, the new regulations will focus on consumer protection by promoting the delivery of simple yet high quality products and services, including mechanisms for grievance resolution.
David Baguma, the Executive Director of the Association of Microfinance Institutions in Uganda (AMFIU), was quoted as saying that “it is high time insurance players developed partnerships with the micro finance institutions in promoting and distributing micro insurance products.” Ronald Zaake, the Chairman of Insurance Institute of Uganda (IIU), noted, however, that insurance stakeholders must consider the unique needs of poor people, including by providing simplified claims procedures when designing these products.
By Ananya Tiwari, Research Associate
About Insurance Regulatory Authority of Uganda (IRA)
Established in 1996, IRA is Uganda’s insurance industry regulator. Its main objective is to ensure a secure insurance industry through effective supervision, administration and regulation. As of 2015, IRA has begun altering regulations to promote a market for micro-insurance in Uganda.
[1] Insurance Regulatory Authority of Uganda, http://www.ira.go.ug/leadstory2.html
[2] All Africa, http://allafrica.com/stories/201506260880.html
MicroCapital, 12 March 2013: “MICROCAPITAL BRIEF: Uganda’s Insurance Regulator, Making Finance Work for Africa (MFW4A), Access to Insurance Initiative (A2ii) Seek to Expand Access to Microinsurance, Perhaps Mobile Money,” https://www.microcapital.org/microcapital-brief-ugandas-insurance-regulator-making-finance-work-for-africa-mfw4a-access-to-insurance-initiative-a2ii-seek-to-expand-access-to-microinsurance-perhaps-mobile-money/
MicroCapital, 19 February 2013: “MICROCAPITAL BRIEF: Microinsurance Network Expects Industry to Double, Reaching 1b Customers by 2020,” https://www.microcapital.org/microcapital-brief-microinsurance-network-expects-industry-to-double-reaching-1b-customers-by-2020/
MicroCapital, 15 January 2013: “MICROFINANCE EVENT: Africa Microinsurance Microfinance Conference 2013, March 26-28, 2013, Accra, Ghana,” https://www.microcapital.org/microfinance-event-africa-microinsurance-microfinance-conference-2013-march-26-28-2013-accra-ghana/
MicroCapital, 13 September 2010: “MICROCAPITAL BRIEF: Asian Development Bank Provides $750,000 Grant for Microinsurance Development in the People’s Republic of China and Mongolia,” https://www.microcapital.org/microcapital-brief-asian-development-bank-provides-750000-grant-for-microinsurance-development-in-the-people%E2%80%99s-republic-of-china-and-mongolia/
MicroCapital, 22 March 2010: “MICROCAPITAL BRIEF: Kenyan Insurance Regulatory Authority (IRA) Commissions Survey of Microinsurance Market,” https://www.microcapital.org/?s=Insurance+Regulatory+Authority+%28IRA%29&x=0&y=0
MicroCapital Universe Profile: Insurance Regulatory Authority of Uganda (IRA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Insurance+Regulatory+Authority+of+Uganda+%28IRA%29
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