Janati Kakongoro Market Development Officer-IRA
The insurance industry‘s digital transformation accelerated during the COVID-19 pandemic in 2020, when insurers expanded online transactions, mobile-based platforms, and digital customer engagements. Product innovation also increased through partnerships with fintech companies and the Agro consortium Uganda to create products for farmers. Regulatory support was also a key factor, with the Insurance Regulatory Authority of Uganda (IRA) promoting innovation through awards and the establishment of programs like the Regulatory Sandbox and Insure X program.
Despite continued growth in gross written premiums, Uganda’s insurance penetration remained low, at approximately 0.86% of GDP as reported by IRA in 2025. This underscores the need to address limited awareness, public mistrust, distribution constraints and gaps in product relevance.
- Digital transformation: Insurers are leveraging technology to improve customer confidence and efficiency, with a focus on online transactions and streamlining processes like claims settlement and motor third-party insurance.
- Micro-insurance and inclusivity: There is a concerted effort to design innovative and affordable products for low-income earners and small-scale farmers, to provide customers with affordable access to insurance products.
- Product development: Insurers are focused on creating products that meet the specific needs of the population, such as addressing climate and disaster risks, and exploring new areas like medical and workers’ compensation insurance. The growing potential of AI and data analytics is helping insurers design more localized, usage based, and behavior-informed insurance products suited to Uganda’s market realities.
- Customer experience: A major push is underway to improve customer experience through AI -powered customer engagement tools in improving responsiveness and service accessibility. This will make products simpler to understand, claims processes faster, and overall service fairer and more transparent.
Despite the progress made, several challenges continue to hinder innovation within Uganda ‘s insurance industry. These include; limited financial resources, high technology implementation costs, shortages of specialized digital skills, legacy ICT systems, regulatory and governance requirements, organizational resistance to change, inadequate public awareness of insurance, limited digital literacy among consumers, fragmented organizational coordination and high cost of internet access in rural areas.
IRA’s Regulatory Sandbox provides a controlled environment in which eligible innovators can test technology-enabled insurance solutions while addressing regulatory requirements and customer-protection considerations.
In July 2026, IRA and UNDP Uganda launched the Insurance Innovation Challenge 2026 to identify and support inclusive insurance solutions for underserved markets. The Challenge prioritised areas including agricultural, health, life and SME insurance and encouraged the use of technology, new distribution channels and partnerships. Selected participants received mentorship, training and support to refine their ideas, while the winners qualified for milestone-based grant funding and continued technical assistance.
Uganda’s insurance industry has therefore moved beyond the initial adoption of digital channels, but innovation remains uneven. Sustained progress will depend on whether insurers can translate technology into affordable, relevant and trusted products while strengthening digital skills, data governance, consumer protection and collaboration across the industry.
The Writer is Janati Kakongoro Market Development Officer-IRA
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