The Insurance Industry in the year 2013: Achievements,
Challenges and Agenda for 2014 – The Regulator’s
Perspective
Protazio Sande
Asst. Dir, Mkt Research and Dev’t
April 8, 2015
Outline
1) Preamble
2) Achievements
Capacity and Growth
Regulatory developments
Supervision and Compliance
3) Challenges
4) Agenda for 2014
5) Conclusion
April 8, 2015
Preamble
 Companies have been resilient in the face of
challenges ….industry expected to grow at a higher
rate than in 2012
 Strides have been taken in a positive direction in the
last 11 months by some companies
 Opportunities to leverage our potential exist as we
move into 2014
April 8, 2015
Capacity and Growth
 Innovations in products
 Public Awareness
 Technical Cooperation
 Oil and Gas
 Agricultural Insurance
 Bancassurance
 Research and Development
 Participation in the regional activities
 National Health Insurance Schemes
April 8, 2015
Regulatory Initiatives
 Pioneering the establishment of Policyholder
Compensation Fund and the Insurance Appeals Tribunal
 Streamlining the operations of the Complaints Bureau
 Reviewed the Insurance Regulations, 2002
 Microinsurance Regulations
 Merged the Insurance Act with the Amendment and a
reprint is now available
 HMOs: Interim guidelines for Licensing and supervision
and Income & Expenditure Reporting format
 Motor Third Party Act and Regulations
April 8, 2015
Supervision and Compliance
 Licensing
National Re-insurance company (Uganda Re)
2013 licenses (22 Insurers, 07 HMOs, 30
Brokers, 18 Loss Assessors, 1027 Agents by
end of October 2013)
 Offsite Inspections
 Onsite Inspections
 Compliance with ICPs
 Efforts to acquire RBS Software

April 8, 2015
Challenges
 Compliance (timeliness in submissions, data
quality/legitimacy)
 Market conduct issues (Undercutting; premium
remittance; claims settlement…..)
 Financial management issues (expense ratios…)
 Public awareness/confidence-deficit
 Slow pace of innovations (new products,
simplified products and processes, markets etc)
April 8, 2015
Challenges cont’d……..
 Gaps/ Restrictions in the Insurance Act
 Enforcement of Workers Compensation Insurance
 Macroeconomic challenges ranging from high
lending rates, volatile Forex market, to high
utility tariffs coupled with inflation and falling
consumers’ real income.
April 8, 2015
Opportunities
 Strong growth: 6% forecast growth in economy
2014
 Strong growth in the service, construction and
manufacturing sector
 Increased investment in infrastructure dev't
 More than average prospects for growth in agric
 Increased commitment to economic integration in
EAC
 Renewed energies in Government commitment to
poverty alleviation.... Microinsurance
Agenda for 2014
 Separation of life and non-life companies
 RBS (Financial issues, Governance issues, Organizational
and internal controls); investment in software, skills…
 Research into non-convention delivery channels
 Compliance : Act, Regulations, Guidelines (significantly
lower tolerance for customer detriment; more credible
deterrence)
 Market Conduct: Premium remittances, Unfair market
practices, Claims settlement .. (Monitoring compliance
to established standard)
April 8, 2015
Agenda for 2014 cont’d…………
 Engagement of relevant Authorities – NPA to come up
with a National Risk Management Policy; URA for
enforcement of Insurance on imports ….
 Insurance of Government Assets –planned engagements
 Big Qn for 2014: Keeping relevant in an ever changing
environment – However good, you can do better
 Managing and leveraging a paradigm shift to product and
process simplicity
 Tighter focus on the root causes of poor customer
satisfaction/outcomes
April 8, 2015
Conclusive notes
The success of the Insurance Industry will be a
result of not only the promising momentum of
the economy and the business environment in
the country, but above all, of the capacity of
the companies in this industry to
permanently re-invent themselves.
II. Companies which anticipate and plan for change
will create their own future. They will dare to
innovate and believe in what is new.
I.
April 8, 2015
Conclusion notes cont’d
III. “…..Addressing the
concerns of a Regulator is
not the end, as something we put behind us.
Rather it must be about putting our traditions
behind us and beginning a transformation of
how we operate that elevates clients interest,
advances openness, spurs innovation, improves
services and – most importantly - delivers
value based on true relationships….” .
Eliot Spitzer
April 8, 2015
Thanks for your Keen attention
Prosperous 2014
April 8, 2015