Insurance Industry highlights in 2025 and projections in 2026

_______________

In 2025, the insurance industry registered positive growth trends, with Gross Written Premiums growing to sh1.57b in the first three quarters of the year, compared to sh1.39b posted over the same period in 2024.

According to Ibrahim Kaddunabi Lubega, CEO, IRA, the industry witnessed consolidations across the industry during the year. For instance, Jubilee Allianz General Insurance Company Limited merged with Sanlam General Insurance to form one company, Jubilee Health Insurance Company of Uganda Limited amalgamated into Jubilee Life Insurance Company of Uganda Limited, while Marsh Insurance Brokers Uganda Limited amalgamated with OLEA Uganda Insurance Brokers Limited. Mergers are a positive trend in the industry.

The industry also witnessed the entrance of two new companies, Tamini General Insurance Uganda Limited, the first company that is offering insurance based on sharia principles (Takaful).

We also saw AAR Health Services change the line of business from a Health Membership Organisation (HMO) to general insurance, and it now trades as AAR General Insurance Uganda Limited. Additionally, we had Ugafode Microfinance Limited enter the bancassurance space.

We also saw the rebrand of UAP Old Mutual to Old Mutual with a promise of renewed focus on customer financial wellness and innovative services.

The other milestone was the introduction of digital Motor Third Party stickers, which seek to streamline the MTP insurance process, strengthen the security of the stickers by reducing the risk of counterfeits and fraud in the system and improve efficiency by eliminating manual processes and enabling faster, more reliable verification.

What will be the role of innovation to the industry in 2026?

Innovation will continue to play a critical role in Uganda’s insurance industry; it is through innovation that the industry is able to drive growth and sustainability, increase penetration, and above all enhance operational efficiency.

Microinsurance is experiencing significant growth and uptake driven by increased awareness and product innovation. In 2024, it grew at 131.42% to sh1.64 billion from sh700m in 2023.

It needs no emphasis that innovation is a powerful tool for staying relevant and moving ahead of the rest in the ever-evolving consumer market. Companies that leverage, especially technology to innovate will continue to thrive as the rest play catch-up.

To support the industry to innovate more, the Authority introduced the Annual Insurance Innovation Awards to recognise and incentivise players in the insurance industry to develop innovative solutions that enhance service delivery, promote sector growth, and increase insurance penetration.

What will drive the insurance sector in 2026?

We project continued positive growth trends driven by increased public awareness and increased public trust, arising from prompt claims payment and complaints handling.

According to Jonan Kisakye, the CEO, Uganda Insurers Association (UIA), in 2026, Innovation and digital transformation will remain central to the industry’s future.

Through partnerships with organisations such as FITSPA and ICTAU, the UIA is promoting technology-driven solutions to enhance product accessibility and adoption. One of the most significant milestones in 2025 has been the digitisation of Motor Third Party insurance stickers, a key social protection insurance policy. This reform now allows motorists to purchase and verify their policies conveniently from home, improving efficiency, transparency, and compliance.

UIA will also work closely with industry stakeholders, and implement the recently developed five-year Insurance Literacy and Market Development Agenda (ILMDA). Launched in September 2025, the ILMDA provides a structured roadmap for demystifying insurance, strengthening consumer confidence, and expanding market penetration.

Other innovations to shape 2026 AAR

According to Christine Nassuna, AAR managing director, the evolution from an HMO to a fully-fledged Non-Life Insurer is a significant milestone in AAR’s journey as it represents growth from a trusted medical insurance provider into a comprehensive insurer with the capacity to serve a broader spectrum of customer needs.

For AAR, this transition reflects confidence in capabilities, maturity in systems, and readiness to operate as a full general insurer in 2026 and beyond.

It also positions them to contribute more meaningfully to the development of Uganda’s insurance sector by expanding access, enhancing service delivery, and offering customers a one-stop solution under a brand they already trust.

For medical clients, this transition will in 2026, not disrupt their experience but rather enhance high-quality medical insurance services AAR is known for. What changes is the value the company will extend to them.

Clients will now enjoy a wider range of insurance solutions under one roof, including motor, property, travel, liability, personal accident, and more.

AAR General Insurance enters the market with decades of experience in service excellence and risk management with its distinct value coming from Exceptional customer experience, Digital-led operations, Prevention-oriented insurance and Product innovation from a reliable brand that truly understands their needs.

As we usher in 2026, becoming a fully-fledged general insurer is not just a corporate milestone, it is a renewed commitment to our clients, our partners, and the industry and we hope to continue delivering quality, innovation and trust.