Gift Shoko (2nd Left), the bank’s Managing Director and Joseph Almeida (2nd R) Liberty Life’s Managing Director, launch the Equi Life Hospital cash insurance product recently
HABARI DAILY I Kampala, Uganda I Equity Bank Uganda has been at the forefront in boosting Uganda’s insurance uptake. For this reason, it unveiled a product known as Equi Life.
It has additionally done this through promotion of Bancassurance, which is a partnership between banks and insurance companies, to promote and sell insurance cover to the masses.
According to Gift Shoko, the bank’s Managing Director, this initiative has proven effective in bridging this gap.
“Equity Bank Uganda has been at the forefront of this initiative. By integrating insurance offerings into its suite of financial services. We have made insurance more accessible to our vast customer base,” he said in a recent interview.
He added that this strategy aligns with the industry’s broader goal of increasing of this initiative
“This model leverages banks’ extensive customer networks to distribute insurance products, simplifying the process for consumers and expanding the reach of insurers, he said.
He further noted that the bancassurance channel’s gross premiums increased from Shs 142.7 billion in 2022 to Shs179.48 billion in 2023, thus making 25.77% growth.
Data from the Insurance Regulatory Authority of Uganda (IRA’s) Uganda’s insurance sector has demonstrated significant growth in recent years, according to recently issued performance report.
It says that with gross written premiums increasing from Shs 1.44 trillion in 2022 to Shs 1.6 trillion in 2023.
“This reflects an 11.29% increase in uptake. Despite this progress, insurance penetration in Uganda remains relatively low. As of 2022, only about 4.5% of the population was covered by insurance,” it says.
Shoko said that in o address this, innovative distribution channels have emerged as pivotal in enhancing insurance accessibility.
He said that insurance penetration can only be boosted by utilizing existing financial infrastructures to reach underserved populations.
“Our recent launch of “Equity-Life” exemplifies Equity bank’s commitment to increasing insurance penetration in Uganda. This product is designed to safeguard Uganda’s under-privileged population, often referred to as “omuntu wawansi.”
This product encourage one to pay a monthly premium of Shs 3,000, and earns Shs50,000 per day for 20 days after hospital discharge- ensuring financial relief of 70% Ugandans earning less than $2 per day.
“By offering products that cater to different market segments, Equity bank is not only enhancing financial inclusion but also fostering a culture of risk management and financial planning.
“This approach is crucial in a country where many individuals still perceive insurance as an unnecessary expense rather than a vital financial safeguard,” said Sonko.
He called upon the authorities to intervene, adding that increasing insurance penetration in Uganda requires a complex approach that combines innovative distribution channels, tailored products and strategic partnerships.
“Equity bank’s efforts through Equity-Life health insurance product serves vital role in expanding insurance coverage, thereby contributing to the overall economic growth and financial well-being of the nation.”
