Patrick Kimathi, Chairman of the Life and Pensions Committee at UIA and Managing Director at UAP Old mutual
The Uganda Insurers Association (UIA) is taking significant steps to increase insurance uptake in the country, aiming to provide financial security for policyholders in the event of specific losses. One of the latest initiatives in this effort is the ‘Gonza Future’ campaign, which focuses on life insurance. Patrick Kimathi, Chairman of the Life and Pensions Committee at UIA and Managing Director at UAP Oldmutual (Life Segment), highlighted the significance of this development.
UIA is a membership organization for insurance companies that promotes best practices and sets industry standards. While it establishes internal guidelines, it also collaborates with the Insurance Regulatory Authority (IRA) and serves as the industry’s voice by engaging in policy influence and lobbying various stakeholders. Additionally, UIA conducts research to support its members and enhance the sector’s growth.
Life insurance is often misunderstood by many Ugandans. Simply put, it is a contract between a customer and an insurance company. The customer pays premiums to mitigate risks such as death, and in return, the insurance company guarantees financial compensation if the insured event occurs within the agreed period.
The ‘Gonza Future’ campaign, which translates to ‘making the future soft,’ is designed to increase awareness about life insurance policies. Many Ugandans do not fully understand the terms of their policies, and this campaign aims to bridge that knowledge gap. It is an educational initiative ensuring that customers grasp the benefits and conditions of life insurance before purchasing a policy. Running for approximately six months, the campaign’s effectiveness will be assessed before determining the next steps.
Policyholders sometimes face challenges, such as failing to pay premiums on time. Life insurance is a contractual agreement, and customers need to assess their financial capacity before committing. Most policies include a grace period, allowing policyholders to recover in cases of financial difficulty. During crises like the COVID-19 pandemic, insurers have adjusted terms to accommodate affected customers.
Another concern is whether policyholders are entitled to full compensation if the insured risk occurs shortly after purchasing the policy. Every insurance contract follows standard provisions, and compensation is granted if all terms are met, except in cases where a waiting period applies.
Claims processing remains a major issue in the insurance sector. UIA assures policyholders that insurance companies pay claims, though fraudulent claims pose challenges. Data from the IRA shows that companies disburse between Shs 5 billion and over 50 billion annually in claims. To ensure their claims are honored, customers must understand their contracts, recognize coverage scope, and provide clear documentation promptly.
For policyholders who feel mistreated by their insurers, there are formal avenues for addressing grievances. The first step is to engage directly with the insurer through dedicated complaint desks. If unresolved, the Insurance Regulatory Authority (IRA) provides a platform for further review. The Uganda Insurers Association is also available to offer support and guidance.
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