GA insurance is open to organic growth

Kampala, Uganda | PATRICIA AKANKWATSA | Francis Kamau is the CEO of GA Insurance. He spoke to The Independent’s Patricia Akankwatsa in an interview about Uganda’s insurance growth prospects.

GA Insurance entered the Ugandan market through the acquisition of Nova Insurance Company nearly four years ago. How has business been so far?

We entered the Ugandan market in 2019 when we acquired Nova Insurance Company 100% and we are recording good progress. We have increased our market share, improved our ranking in the industry position from 19 to 14 based on the results for the first quarter of 2023, increased our staff number and above all we have grown our business with partnerships and the number of business channels. So, in every aspect and measure, we have done very well.

What is your assessment of the uptake of insurance in Uganda compared to Kenya and Tanzania?

Insurance penetration in Uganda is still low (less than 1%) compared to Kenya and Tanzania. Moreover, insurance penetration in East Africa is not as high as it is in Southern Africa and other parts of the world. Nevertheless, Uganda’s insurance penetration might be low but there’s still room for growth and that is the reason GA entered this market. We want to see penetration increase upwards.

How can Uganda deepen its insurance penetration going forward?

There have to be concerted efforts with various stakeholders in the industry to enhance penetration. The population needs to understand that insurance is the best risk transfer mechanism to protect themselves.

The stakeholders, too, need to come together and design a strategy that will improve the uptake of insurance in this country. There’s a very big potential, as has happened in other countries, to entrench microinsurance to serve the population, especially in the lower pyramid.

What new products have GA insurance brought to the Ugandan market?

We have brought a difference in the way in which insurance is sold and consumed, and how we handle our clients. We have innovated in service delivery. Our core is to be customer eccentric, to stand with our clients, and to be there for them when they need us because that is the test of insurance. That is what we are doing and we hope it will lead us to the top. We have also launched a product known as Gray Sure, a medical product for the elderly. We hope this will ease the elderly with access to medical care services.

What are the future opportunities for insurers in Uganda?

The opportunities are many. This is a country with a well-educated and knowledgeable young population which understands risks and looking for ways to mitigate them. The new technology is another opportunity to sell insurance and as such there’s a need to design and deliver services in the digital space. With increased awareness, we should be able to see a sharp uptake of insurance.

What is your comment on the proposed health insurance scheme similar to Kenya’s NHIF? How best can it be structured so that all the stakeholders embrace it?

Universal medical care is very critical in ensuring a healthy population. Thus, a national health insurance scheme is a very good initiative but it needs to be delivered carefully and with the involvement of all stakeholders. As the government champions it, insurers need to give their input because they have all the statistics and data.

The population needs to have its input in the scheme and so is the medical fraternity. There needs to be a meeting of minds, where all these people who are in charge sit together and then a committee is formed that entrenches towards universal healthcare. It is a good thing and I look forward to contributing to it. GA is ready to contribute to see that this happens.

GA entered the Ugandan market through acquisitions. How is GA Insurance planning to boost its growth going forward?

Is there hope for new assets to cement it among the leading insurers in the region?

GA is open to organic growth. We are open to further mergers and acquisitions with likeminded insurers or insurance companies. We are also ready to increase our business through the provision of high-level service. Those are some of the few ideas we have- to promote growth in future