Dr Lawrence MugangaVice Chancellor-Victoria University addressing insurance industry CEOs recently at at Four points Hotel
Victoria University Vice Chancellor Dr Lawrence Muganga has warned insurance brokers that artificial intelligence (AI) will not necessarily replace them, but brokers who master the technology could outpace those who fail to embrace it.
Muganga made the remarks while addressing insurance industry CEOs and other executives during the monthly AAR-Insurance Brokers Association of Uganda (IBAU) CEO Breakfast Meeting at Four Points by Sheraton Recently. He challenged insurance brokers to move beyond viewing AI as a threat and instead use it to automate routine work, cut operational costs and create more time for advising clients.
“AI is not going to replace you. But a person who has mastered AI as a broker will definitely disseminate your business,” Muganga said.
He urged executives to rethink how they run their businesses, arguing that companies that fail to adopt emerging technologies risk being overtaken by competitors that use AI to work faster and serve more customers.
“The same way you bring in electricians, the same way you bring in IT people to help you troubleshoot things, you can also bring in these people to figure you out. How do you automate your systems?” he said.
Muganga said AI can take over time-consuming tasks such as searching through documents, drafting emails, conducting research and preparing comparative reports, allowing professionals to concentrate on higher-value responsibilities.
“You can feed that machine with all the documents you have. Everything you have. Then it will hold a memory… it will benchmark, it will go to different jurisdictions, it will pick different information and it will produce a better report or comparative analysis,” he said.
He told the CEOs that automation could also help them reduce costs and potentially make insurance products more affordable to customers.
Muganga cited Uganda’s low insurance penetration as a major opportunity for insurers and brokers, saying the industry has a large untapped market.
He said insurance penetration in Uganda remains below one percent, describing the situation as a largely untapped market that could be expanded through better products, lower costs and improved ways of reaching customers.
“Can we make it better? Yes. Can AI help us to do better? True. Can we approach these customers simply if you cut costs with your daily practices, processes and everything?” he asked.
Muganga also challenged brokers to reconsider how they market insurance, particularly products that are traditionally sold by emphasising death and other risks.
He said some potential customers may be discouraged by the way insurance is presented to them, urging industry players to find more effective ways of communicating the value of insurance.
“Sometimes the packaging is a problem. How we send our messages to these people,” he said. The Vice Chancellor further warned CEOs against dismissing new technologies simply because they appear unfamiliar, drawing comparisons with earlier innovations such as the telephone, television and computer.
He said businesses that ignore technological changes risk being left behind as adoption grows.
Muganga also encouraged insurance executives to invest in AI expertise within their organisations, comparing AI to an additional resource that can support employees with their workload.
His remarks came as the IBAU continues its capacity-building programme for insurance brokers.
IBAU Chairperson Ritah Mutesi Kabayiza said the association had deliberately chosen different topics for its monthly engagements to equip members with knowledge and skills needed to grow their businesses.
“We started off with corporate governance, and then we talked about human resource trends, and today we are talking about AI, so this is an intentional journey to ensure that our members are equipped with the knowledge, with the experiences, with the insights that they require to ensure that they take their businesses to the next level,” Kabayiza said.
IBAU Chairperson Ritah Mutesi Kabayiza
Kabayiza said brokers remain central to the insurance industry because of their advisory role and direct relationship with clients.
“The insurer of tomorrow is one that is going to focus on the broker,” she said, adding that brokers understand customers’ businesses, risks and needs.
She described AI as a tool that can simplify analytics and routine work but said human leadership and client relationships remain important.
“AI is meant to make our lives easier because it’s a tool. So, what I used to do, probably one hour, I can now do it in minutes,” Kabayiza said.
She also described AI as an “intern” that can assist with tasks while leaving the final responsibility with the professional.
“I look at AI as an intern in my team. AI is an intern in my team… They will help you put the presentation together. You’ll still have to look at it,” she said.
Meanwhile, AAR CEO Christine Nassuna said the company is expanding beyond its traditional identity as a healthcare and medical insurance provider to become a broader general insurer.
Nassuna said AAR’s expansion will cover products including motor, property, travel, fire, liability and personal accident insurance.
“For many years, many of you, when you had the name AAR, you probably immediately thought about healthcare or medical insurance,” Nassuna said.
“But markets change, customer expectations change, risks change, and organizations evolve. And that is why AAR is taking a strategic direction to move beyond health and become a broader general insurer.”
She said AAR intends to use its experience in underwriting, claims management, customer service and provider management as it enters the wider general insurance market.
Nassuna also called on brokers to support the company’s expansion by bringing business, market intelligence and feedback on customer needs.
AAR CEO Christine Nassuna
“We need you to support us. Give us your business. Give us your ideas. Bring us marketing intelligence and also bring us challenges that your clients are facing,” she said.
She added that AAR would focus on responsiveness, timely quotations, clear communication and claims service as it builds its general insurance business.
“The real test comes when something goes wrong,” Nassuna said, noting that insurers are ultimately judged when clients suffer losses and need their claims handled.
The meeting brought together insurance brokers, CEOs and other industry stakeholders for discussions on the impact of AI, business efficiency and opportunities within Uganda’s insurance market.
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