Thirty six (36) insurance brokerage firms, collected an estimated UGX280 billion in premiums compared to UGX233.3bn in 2017, according to preliminary reports from the Insurance Regulatory Authority (IRA).
According to the report, brokers accounted for 32.7% of the insurance industry premium compared to 32% in 2017.
Total business generated through Bancassurance was UGX26bn in 2018- of which UGX19.6bn was in respect of life business while UGX6.3bn was in respect of non-life business.
The 10 top insurance brokerage firms, who control over 70% of the insurance brokerage market raked in a combined UGX31.16 billion in commissions. The rest of the 26 brokers, earned a total of UGX10.62 billion- just about 23% of the total brokerage industry commissions- totaling to UGX47.43 billion.
The industry’s commission earnings rose by 17% – from UGX40.75 billion in 2017 to UGX47.43 billion in 2018.
This is on the back of a 17.51% growth in total industry premiums that grew from UGX728.5 billion in 2017 to UGX856 billion in 2018.
Who are the top 10 brokers?
Although the insurance regulator used 2017 earnings for Minet- UGX9.45 billion, IRA believes Minet remained the biggest insurance broker with an estimated 19.95 % market share of commission earnings. By the time of compiling the report, Minet had not filed their final returns.
Clarkson who in 2017 were in the 4th Position, over took Marsh Uganda and Willis Towers Watson (formerly GrasSavoye) to become the number 2 broker by earnings. Clarkson’s commission earnings grew by 78.21% from UGX2.77 billion to UGX4.95 billion- netting them a comfortable 10.45% market share.
Willis Towers Watson- previously known as Gras Savoye, remained in number 3 position with a 24.73% appreciation in commission earnings from UGX3 billion to UGX3.78 billion.
Marsh Uganda, who previously occupied the No.2 spot are in the No.4 rank, after 50.98% decline in commission earnings from UGX7.15 billion in 2017 to UGX3.5 billion in 2018.
Newcomers, Afrisafe Risk Consultants owned and run by Kwame Ejalu, the former Marsh Uganda Chairman, jumped 3 places, from the 8th position in 2017 to the 5th position, thanks to an 82.16% rise in commission earnings from UGX1.7 billion to UGX3.1 billion.
Others in the top 10 are Ayo Uganda, in the 6th position with UGX 3 billion in commission earnings, followed by African Risk & Insurance Limited (UGX2.81 billion) in the 7th position. Padre Pio (UGX2.23 billion), Hillcrest (UGX2.1 billion) and Liason are in the 8th, 9th and 10th positions respectively.
Liason figures are also based on 2017 earnings.