Fraud, unpaid claims rampant as Uganda loses Shs 250bn in premiums every year
It is easy to explain why Uganda’s insurance penetration stands at just 0.65% - one of the lowest in the region. According to the 2011 industry performance report, this figure is far lower than Rwanda’s 2.3%, Kenya’s 2.76% and Tanzania’s 2.2%.
The business community - the biggest supporter of the insurance industry in other countries - continues to shun it in Uganda. In down-town Kampala in Kikuubo, a hub of trading businesses worth millions of dollars, insurance is considered nothing but a luxury or even an inconvenience that many say they can gladly do without.