Uganda's Insurance Sector Must Innovate to Survive, Regulator Warns

The Insurance Regulatory Authority (IRA) in Uganda has issued a stark warning to the nation's insurance industry: innovate or face obsolescence. The call comes as rapid advancements in technology and evolving consumer demands fundamentally alter the global insurance market, making traditional business models increasingly unsustainable.

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We are recognizing the fact that the insurance landscape has been disrupted. It is no longer business as usual. We are trying to see how innovation can help us position ourselves in that disrupted environment.

Sande Protazio, the IRA's Acting Chief Executive Officer, emphasized during the third annual fintech workshop in Kampala that innovation is no longer optional but critical for survival. He noted that artificial intelligence, shifting consumer behaviors, and novel business approaches are collectively reshaping the insurance sector worldwide. Protazio stressed that customers now expect insurance services to be as straightforward, accessible, and convenient as other digital offerings, demanding the ability to purchase policies and receive claims payments with ease, often from their own homes.

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Customers expect insurance to be as simple, as accessible and very convenient. In the comfort of your seat, you should be able to consume insurance. In the comfort of your seat, you should be able to get your claim paid whenever the need arises.

To remain competitive, Protazio urged insurers to fundamentally rethink their strategies. This includes redesigning existing products, enhancing their distribution networks, and actively engaging with customers to ensure their offerings meet evolving needs. The IRA is also promoting the use of regulatory sandboxes, which provide a controlled environment for innovators to test new solutions and develop market-ready products. Protazio sees these sandboxes not just as testing grounds but as vital mechanisms for addressing long-standing industry challenges related to trust, accessibility, and efficiency. He believes that by working collaboratively with innovators, the insurance sector can strengthen public confidence and establish itself as a cornerstone of economic support.

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We have exposed our ignorance that we don't know. We have opened ourselves up to you and invited you to help us fix the challenges that we have taken note of over time.