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Equity Bank bancassurance premiums rise to Shs16.13b as insurer shifts focus to value
Kampala, Uganda | NEWS CORRESPONDENT | Equity Bank Uganda recorded total bancassurance premiums of Shs16.13 billion in the second quarter of 2026, giving it an 8.77 percent share of the market and placing it fourth among banks in Uganda’s bancassurance segment.
The performance was driven largely by growth in life assurance business, which offset slower growth in non-life insurance and reflected changing trends in customer demand, according to the bank’s Head of Bancassurance, James Sserumaga.
Life assurance premiums increased from Shs5.73 billion in the second quarter of 2025 to Shs11.72 billion a year later, representing growth of about 105 percent. Over the same period, however, the number of life policies fell from 75,000 to 65,000.
The contrast between higher premiums and fewer policies points to a shift in the bank’s insurance portfolio towards higher-value products and customers making larger contributions.
Sserumaga said the growth was supported by staff training initiatives, greater productivity and wider access to insurance through the bank’s branch network, merchant channels and digital platforms.
The strategy has focused not only on acquiring new customers but also on increasing the value generated from existing policyholders.
Industry observers note that insurance providers are increasingly emphasizing premium value and policy sustainability as they seek profitability in a market where insurance penetration remains relatively low.
At Equity bank, the emphasis has also extended to policy persistency, a measure of how consistently customers continue making premium payments after taking up cover.
According to Sserumaga, dedicated customer engagement teams have been following up policyholders to encourage premium payments and renewals, contributing to stronger insurance income.
While life assurance posted strong gains, non-life insurance remained relatively stable. Premiums from the segment edged down slightly from Shs4.45 billion to Shs4.41 billion during the review period.
The bank attributes part of the slowdown to changes in its lending portfolio. Traditionally, non-life insurance products linked to secured loans, such as cover for property pledged as collateral, have been an important source of premium income.
However, the growing share of unsecured lending has reduced demand for some of these products.
Despite the slight decline in premiums, the number of non-life policies increased from 659 to 839, suggesting growing uptake although at lower average policy values.
The bank says it is exploring ways to increase income from the segment through improved renewals, greater participation from corporate clients and the sale of higher-value policies.
Looking ahead, Sserumaga said future growth is expected to come from digital channels and microinsurance products designed to serve lower-income customers. The bank is also exploring products such as micro-medical insurance as it seeks to expand insurance uptake among its broader customer base.
