In Uganda, where economic stability is often precarious, the need for a strong culture of saving and insurance is more critical than ever. However, the uptake of insurance products remains significantly low compared to neighbouring countries.
The Government is being called upon to put in place policy and regulatory incentives that will make insurance more attractive for Ugandans and boost the saving culture.
This was highlighted by Mr. Sumit Kumar, the CEO of Jubilee Life Insurance Uganda, at the recent launch of the Jubilee Smart Save Plan.
During the event, Kumar and other industry leaders called for greater government intervention to incentivise insurance through better policies and public sensitisation.
The Bank of Uganda reports that the saving rate in Uganda is only 2-5% among the 18 million working nationals, starkly lower than Kenya’s 23%, Rwanda’s 18%, and Tanzania’s 13%.
“In Uganda, the saving culture is not there, and it will require collaborative efforts with all players in the industry,” Kumar said.
He pointed out that this lack of a saving culture partly motivated the introduction of the Jubilee Smart Save Plan, a new insurance product designed to offer both protective and flexible benefits with superior returns on investment.
Kumar explained that the new plan, developed after extensive customer feedback, uniquely combines risk management and investment, providing security for beneficiaries with a return of 10-15% over the policy period until maturity.
“We got a lot of feedback from customers who asked for plans to have flexibility and this one does,” he added, underscoring the customer-centric approach of the new product.
However, despite these innovations, the uptake of insurance in Uganda remains low.
Dorcus Kuhimbisa, the Chief Operations Officer of Jubilee Life Insurance, stressed that this could be addressed with more robust government commitment. She highlighted the need for governmental incentives for insurance through favourable tax policies and increased public sensitisation efforts.
“In Uganda, we are still struggling with initiatives like the National Health Insurance Scheme. Micro products like these could expose people to the benefits of insurance and foster belief in it,” Kuhimbisa noted.
Kuhimbisa also pointed to regulatory challenges that further complicate the insurance landscape in Uganda, such as stringent anti-money laundering measures that restrict interaction with potential clients who lack national IDs, mobile phones, or internet access. This results in a skewed target market that is difficult to reach and serve effectively.
During the launch, Ms. Sharon Tumushabe, a financial literacy coach, reiterated the importance of personal responsibility in financial planning. She encouraged Ugandans to adopt a proactive approach to managing their finances, independent of societal norms. “We always tell ourselves that tomorrow will take care of itself, but it takes you taking charge of yourself. You don’t have to move in a crowd or do things the way others think to do them,” Tumushabe advised.
The event concluded with a unified call for a shift in both public perception and governmental policies regarding savings and insurance.
The leaders at the launch urged for a partnership between the insurance industry and the government to develop strategies that not only improve financial literacy but also create an enabling environment that encourages more Ugandans to invest in their financial security through savings and insurance.
He pointed out that this lack of a saving culture partly motivated the introduction of the Jubilee Smart Save Plan, a new insurance product designed to offer both protective and flexible benefits with superior returns on investment.
About Jubilee Smart Save Plan
Jubilee Smart Save Plan provides clients with a flexible opportunity to save for children’s education, business capital, buying a home and any other financial need and comes with a competitive return on investment and a protection cover.
For premiums starting as low as UGX100,000, Jubilee Smart Save plan allows for a disciplined and systematic way of saving for specific future financial needs instead of borrowing.
Premium payments can be made monthly, quarterly, semi-annually, or annually, through a variety of convenient methods. Benefits include a guaranteed sum ⏤15% of sum assured ⏤ paid as family income benefit annually as well as a bonuses payable each year.
The plan also comes with a protection cover of 10% of the sum assured payable to the beneficiaries in case of death.
The product is open to anyone between 18 – 65 years.