The East Africa Insurance Outlook is an annual report that provides insights and analysis on the latest trends and developments and growth opportunities in the insurance sectors of the East African Community (EAC), notably Kenya, Tanzania, Uganda and Ethiopia. The report provides direction for insurers, regulators, investors and policymakers as the industry navigates a rapidly evolving economic landscape.
EAC insurance penetration (total gross written premiums as percentage of GDP) remains low, averaging 1.57%, overall compared to global standards, with East African markets substantially underperforming mature regions. It is relatively highest in Kenya (2.25%), followed by Uganda at 0.87%, Tanzania at 0.60% and Ethiopia at 0.30%. The East African insurance sector continues to grow gross written premiums (GWPs) year-on-year, propelled by economic expansion, rising risk awareness, insurance regulatory reforms, digital distribution channels (including bancassurance and insurtech), and product innovation.
The East African insurance sector has demonstrated remarkable resilience and adaptability in the face of evolving market dynamics. Factors such as economic expansion, increased financial literacy, and digital transformation have propelled growth. In addition, regulatory enhancements have sought to foster stability and consumer confidence. However, challenges persist, ranging from low insurance penetration to macroeconomic volatility, necessitating strategic change and innovation to unlock the sector’s full potential. Insurers are increasingly leveraging advanced risk assessment models and data-driven underwriting, enabling them to enhance pricing accuracy and claims efficiency in an ever-competitive landscape. The East African insurance industry stands at an inflection point where resilience, adaptability, and innovation will dictate its trajectory. By harnessing data, embedding ESG principles, leveraging technology, and embracing regulatory shifts, insurers can drive sustainable growth and enhance financial inclusion, reinforcing their role as key pillars of economic stability in the region.
Findings reveal that Insurance penetration in Uganda remained relatively stable. Gross Written Premium (GWP) for full year 2024 reached Ushs 1.76 trillion, a 10% increase from Ushs 1.60 trillion in 2023. Life insurance segment continues strong growth, averaging, about 13% (last half a decade) expanding its share of the market. Total insured individuals rose from 405,837 to 506,119, indicating expanding market reach. This growth is largely driven by increased effort to raise awareness about insurance across the region. Despite Uganda’s relatively low insurance penetration, the Market present significant opportunities for industry players. The adoption of digital platforms has expanded customer reach, while technological advancements have enhanced insurers’ ability to conduct more efficient and precise risk profiling.
Key strategic messages for Uganda include:
- Significant Growth Potential: Uganda’s insurance market continues to expand in both premiums and policyholders, yet penetration remains under 1% of GDP, signalling a vast untapped market relative to regional peers and global averages. This implies that strategic efforts must target inclusive product design, affordability scaling, and customer awareness to broaden insurance adoption;
- Diversification and Product Innovation: Emerging segments (life, health insurance, microinsurance, Takaful) are rapidly gaining traction, indicating demand for tailored risk solutions. This implies Regulators and insurers should accelerate frameworks that support diverse, culturally relevant, and accessible insurance products;
- Regulatory Reform and Consumer Protection: EAC-wide and national regulatory initiatives (e.g., harmonised supervision, Takaful regulations) are modernising the insurance ecosystem and improving consumer trust;
- Economic Resilience and Risk Management: Insurance plays a crucial role in mitigating economic risks, including climate-related losses in agriculture, health shocks, and business risks, contributing to broader financial stability. Public and private sector collaboration should integrate insurance into national resilience strategies, particularly in catastrophic and agricultural risk coverage.
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