The Minister of Works and Transport, Gen Edward Katumba Wamala, has highlighted the critical role of motor third-party insurance in providing financial relief to road accident victims and promoting responsible road usage across Uganda.
According to him, third-party insurance offers a vital safety net for accident victims and is an important tool, not only for compensation but also for encouraging accountability on our roads.
“Boda bodas are involved in the majority of road crashes, yet they are among the least insured. We cannot ignore them—they serve a purpose but also pose a risk. The insurance sector must increase education efforts to help them understand the importance of third-party coverage,” he said during the 14th Annual Insurance Agents Awards held in Kampala, before reiterating the government's commitment to have all public assets, including Uganda Airlines aircraft, railway systems, water vessels, and government vehicles, are fully insured.
The awards organized by the Uganda Insurers Association (UIA), were held under the theme “Driving a Resilient Agency Distribution Channel for Sustained Insurance Growth.” The event recognized the achievements of insurance agents, who continue to play a central role in expanding access to insurance services.
According to the minister, a strong insurance sector plays a major role in national development by providing a safety net against risks.
“Insurance agents are the lifeline of this industry, often doing more than even the CEOS,” he stated.
Katumba emphasised the importance of agents as a key link between insurance companies and the public, citing the growth in the number of agents from 2,000 in 2016 to over 4,500 in 2024 as a sign of progress.
“Several Ugandans still undervalue insurance. Agents must lead the charge in educating the public and dispelling the myth that insurance does not pay,” he added.
He further called on agents to simplify complex insurance policies and help the public understand the value of protecting themselves against unforeseen risks.
UIA chief executive officer, Mr Jonan Kisakye, praised insurance agents for their vital contribution to the sector, noting that they are responsible for over 60 percent of life insurance and more than 50 percent of general insurance premium collections.
“Agents are the backbone of our distribution model, yet their role is often misunderstood,” Mr Kisakye said, noting that these awards are designed to acknowledge their professionalism and commitment.
He also highlighted operational hurdles agents face, particularly with taxation, noting that they are subject to a 10 per cent withholding tax on commissions and a combined income tax obligation of up to 30 per cent. He revealed that discussions with the Uganda Revenue Authority (URA) are ongoing to simplify the tax filing process and address VAT registration concerns for higher-earning agents.
The awards have evolved over the years, expanding from a focus on life insurance agents to now include categories such as motor third-party and retail medical insurance agents. Life insurance has since emerged as the fastest-growing segment, with Uganda’s leading insurer now operating in the life space.
However, Kisakye highlighted that medical insurance remains predominantly corporate-focused, leaving retail uptake significantly low.
“With only about 500,000 Ugandans insured out of over 45 million, the introduction of a retail medical category aims to drive wider adoption,” he said, adding that future award categories may include agriculture and other emerging sectors.
Jubilee Health Insurance Uganda chief executive officer Mr Dan Musiime said the recognition of agents was a valuable motivator for improved performance across the industry.
“Appreciation inspires agents to do more,” Mr Musiime noted. He also pointed to technological advancements like Jubilee’s J-Force app, which allows agents to onboard clients and issue policies digitally, enhancing both speed and efficiency.
The event underscored the growing professionalism in the insurance sector and the indispensable role agents play in expanding financial protection for Ugandans.
Source: The Monitor (click here to view)
