In 2025, Uganda’s insurance industry registered positive growth, with Gross Written Premiums (GWP) increasing to sh1.57 billion in the first three quarters of the year, compared to sh1.39 billion during the same period in 2024. The industry’s growth is being driven by a combination of mergers, new entrants, and innovative practices aimed at improving service delivery and expanding access to insurance products across the country.
Mergers and New Market Entrants
One of the key trends in 2025 has been consolidation. The merger of Jubilee Allianz General Insurance with Sanlam General Insurance to form Jubilee Life Insurance Company of Uganda Limited marks a significant shift. Similarly, Marsh Insurance Brokers Uganda Limited amalgamated with OLEA Uganda Insurance Brokers Limited, a move that underscores the growing trend of mergers within the industry.
These mergers are viewed as a positive development, enabling companies to pool resources, expand their reach, and enhance their product offerings to better serve consumers.
In addition to these consolidations, two new companies entered the market in 2025, including Tamini General Insurance Uganda Limited, the first company to offer insurance based on Sharia principles (Takaful). The introduction of Takaful represents an important milestone for the industry, broadening insurance options for diverse consumer groups.
Furthermore, AAR Health Services made a significant transition, evolving from a Health Membership Organisation (HMO) to a fully-fledged general insurer, now trading as AAR General Insurance Uganda Limited. This transformation allows the company to offer a more comprehensive range of products, serving a broader customer base.
Digital Advancements and Market Innovations
Innovation in Uganda’s insurance sector was also evident through technological advancements. A major milestone was the introduction of digital Motor Third Party (MTP) stickers, which aim to streamline the MTP insurance process and improve the overall efficiency of the system. By digitizing the stickers, the risk of counterfeiting and fraud is reduced, and manual processes are eliminated, leading to faster, more reliable verification.
Focus on Financial Wellness and Customer-Centric Services
A significant rebranding in the industry came from UAP Old Mutual, which rebranded to Old Mutual, with a promise to refocus on customer financial wellness and the introduction of innovative services. This rebranding reflects the industry’s increasing attention to customer needs and a more holistic approach to financial products.
The focus on customer wellness aligns with the growing recognition that the insurance sector must do more than just provide coverage—it must offer products and services that support the broader financial well-being of individuals and businesses.
Microinsurance and Increased Market Penetration
Microinsurance has experienced significant growth in 2025, driven by greater awareness and the introduction of new, innovative products. In 2024, microinsurance premiums grew by an impressive 131.42%, reaching sh1.64 billion, up from sh700 million in 2023. This growth demonstrates a strong shift toward more affordable and accessible insurance products that cater to a wider population.
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Innovation as a Key Driver of the Future
Looking to 2026, innovation will continue to play a critical role in the growth and sustainability of Uganda’s insurance industry. With the launch of the Annual Insurance Innovation Awards by the Insurance Regulatory Authority (IRA), the industry is being encouraged to innovate more rapidly. These awards aim to recognize and incentivize players who develop innovative solutions that improve service delivery, promote growth, and increase insurance penetration.
Future Projections and Industry Outlook
The positive growth trend in Uganda’s insurance sector is expected to continue, driven by innovations in both products and technology. As awareness increases and the industry adapts to changing consumer demands, insurance penetration is set to expand further. The integration of digital technologies, combined with strategic mergers and new players in the market, will help make insurance more accessible to Ugandans in both urban and rural areas.#
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In 2025, Uganda’s insurance industry has shown remarkable growth, fueled by strategic mergers, the entry of new players, and technological innovations that are reshaping the sector. With digital advancements, such as the introduction of digital MTP stickers and the continued expansion of microinsurance, the industry is well-positioned to increase access and enhance customer satisfaction. Looking ahead, the focus on innovation and customer wellness will drive the industry’s growth as it continues to evolve to meet the needs of an increasingly connected and informed population.
