Kampala, Uganda | THE INDEPENDENT | The Insurance Regulatory Authority-IRA has revealed that they are strategizing to introduce a mandatory insurance cover for markets as well as high-rising buildings.
When these plans finalize, this policy will be added to the already compulsory insurance policies like the motor third party, workman’s compensation, and the recently introduced cargo insurance for goods in transit entering the country.
Bernard Obera, the director for supervision at IRA, says that insurance in Uganda is still very low, and the players in the sector have to come up with strategies and innovations through an established think tank group, deliberately focusing on those issues, adding that innovations must be tailor-made at the micro level to make sure that insurance uptake in the Ugandan market increases.
Without much detail, Obera mentioned that IRA is in discussions with the ministry of finance for an effective implementation of insurance to cover markets as it was introduced in Tanzania.
Obera revealed this information while officiating at the new Ayo insurance payment system, where subscribers will be using their loyalty points known as the MTN Senkyu points to contribute to life insurance covers using their mobile phone.
Simon Rubondo, the immediate past chairperson of the Uganda Insurance Brokers Association says that though insurance uptake is still very low, it is the players in the sector to identify solutions to solve this problem, mainly through demystifying the complexity of the insurance prices.
Rubondo says that as insurance brokers, they should cease the unnecessary competition among themselves. He adds that this is the only way they will focus on their individual abilities and improve innovations, similar to what Ayo did.