Uganda’s insurance sector has shown strong growth and rising confidence as companies in the country paid out shs442.73 billion in claims during the first half of 2025. The data was released by the Insurance Regulatory Authority (IRA), the body that oversees the industry.
According to the IRA, claims are formal requests made by policyholders to their insurance providers for reimbursement or compensation against losses covered under their insurance policies. The figure of shs442.73 billion represents an increase from the shs423.8 billion paid in the same period in 2024, showing a steady upward trend.
The Chief Executive Officer of IRA, Al Hajji Ibrahim Lubega Kaddunabbi, said the payments represent 43.6 percent of the shs1.016 trillion in total industry Gross Written Premiums (GWP) collected within the period. He explained that this underscores the substantial financial impact of claims on the sector and also highlights the benefits insurance is delivering to Ugandan policyholders.
Kaddunabbi emphasized that the growth in payouts shows more people are benefitting from their insurance policies, a development that boosts public trust in the sector. “As IRA we will remain committed to ensure all legitimate claims are paid and in time. We are also committed to ensure those involved in fraud are investigated and prosecuted accordingly,” he said.
Alongside higher claims payouts, the industry has also recorded major growth in coverage. The number of insured people rose from 405,837 in 2024 to 506,119 in 2025. This represents a 24.7 percent increase, meaning that within a single year more than 100,000 additional people were brought under the umbrella of insurance protection.
The IRA report further revealed that individual policies grew from 352,395 to 402,405, showing a 14.2 percent rise. This growth was driven strongly by the uptake of micro-insurance products, which are designed to reach low-income earners and households in the informal sector. Micro-insurance nearly doubled within one year, from 62,220 to 111,856 subscribers. According to Kaddunabbi, this indicates that financial inclusion in Uganda is widening, as more vulnerable groups are accessing affordable protection.
At the same time, non-life insurance and Health Management Organizations (HMOs) posted moderate gains, while individual life policies recorded a slight decline. The IRA boss said this suggests the need for fresh innovation in the retail life insurance segment to make it more appealing to Ugandans.
Group insurance policies however emerged as the fastest-growing category. The number of group policies nearly doubled, rising from 53,442 in 2024 to 103,714 in 2025, representing 94 percent growth. Kaddunabbi noted that this reflects the increasing role of employers and institutions in providing collective risk protection for their staff and members. Workplace-based and group insurance schemes are becoming a strong anchor for risk pooling and long-term financial security in the country.
Analysts say the trend of rising claims and broader coverage points to an industry that is expanding and gaining trust among citizens. In the past, some Ugandans were hesitant to embrace insurance due to fear of delayed or unpaid claims. But with the IRA putting emphasis on timely payments and fraud prevention, confidence appears to be improving.
The sector’s expansion also comes at a time when Uganda’s economy is experiencing growth and diversification. As more people join the workforce and businesses formalize, demand for insurance products is expected to rise further. Industry observers believe that the combination of micro-insurance for low-income households and group-based insurance for employees could significantly deepen financial protection across the country.
Overall, the IRA figures show an insurance industry that is steadily maturing. With increased claims payouts, wider coverage, and innovations like micro-insurance, Uganda’s insurance sector is becoming a stronger contributor to financial protection, social security, and economic development.
