Q&A: Treat insurance as an investment tool ⏤ Jubilee Life CEO, Kumar Sumit Gaurav Jubilee Life Insurance Uganda recently launched a new product aimed at fostering a culture of saving among Ugandans. Jubilee Smart Save Plan- Olina Plan B? offers unmatched flexibility and higher returns on investment for customers. We had the opportunity to speak with the company's CEO, Kumar Sumit Gaurav, who shared insights about the plan and their aspirations for its impact.

Q. The financial sector in the country is flooded with many innovative products, more so in insurance. What can you tell us about Smart Save and how different it is from others?

A. Jubilee Smart Save Plan- Olina Plan B? stands out from other offerings by combining both risk and investment elements. It not only provides comprehensive insurance coverage to protect against unforeseen risks but also offers robust investment opportunities, allowing policyholders to grow their savings over time.

Another key feature is that if the policyholder passes away, the beneficiary will receive 10-15% of the funds annually until the policy matures. Additionally, the returns on investment for this plan will be significantly higher than what we have previously offered, with most of the returns being passed on to the customer provided all premiums are paid in a timely fashion and the customer does not lapse the policy.

Q. What was the thinking behind this product? What makes it tick under the prevailing economic circumstances?

A. The development of the plan was driven by extensive research and the need to empower customers. Reports indicate that the saving culture in Uganda is concerning, with only 2-5% of the 18 million working Ugandans having savings. 

Jubilee Smart Save Plan- Olina Plan B? aims to bridge this gap by enabling individuals to save for any goal, whether it be children’s education, business capital, purchasing a home, or any other financial need, while delivering superior investment returns.

Q. You did mention customer feedback. How often are customers involved in decisions that lead to innovations such as this?

A. At Jubilee Life Insurance, customer engagement and feedback are very crucial for us, especially when it comes to product innovation. Before creating Jubilee Smart Save Plan- Olina Plan B?, our agents engaged with over 3,000 individuals to understand their various financial needs. Their feedback provided a solid foundation for designing a product that truly meets the needs of our customers. We are very happy that the product is now ready for uptake.

Q. During the launch, you mentioned that the Smart Save Plan is intended to bolster a saving culture in Uganda. How bad is the situation here?

A. The saving culture in East Africa is low, but Uganda has the lowest saving culture compared to Kenya and Tanzania. Credible data shows that only 3 to 5 percent of the 18 million working Ugandans are saving, whereas the same percentage in Kenya is 23%, in Rwanda, it is 18%, and in Tanzania, it is 13%. This calls for a concerted effort among stakeholders, including banking partners, insurance companies, the Central Bank, the Uganda Insurance Association, and the Uganda Insurance Regulatory Authority, to drive awareness around saving and encourage people to cultivate a saving culture in the country.

Q. In your view, where does this aversion come from and how do we get out of it as a society?

A. The aversion to saving often stems from competing financial needs and priorities. Many people also believe that you need to have a lot of resources to save. My advice is to start from where you are. Build brick by brick on a day-to-day basis, and soon it will become a habit. Over time, you’ll be able to save with a long-term perspective in mind. Savings not only enable individuals to meet their financial needs but also provide a cushion in case of emergencies.

Q. Our insurance uptake is still very low. What would you say to a person who does not believe in insurance?

A. Insurance serves as a risk management tool similar to how you allocate funds to fixed deposit accounts, mutual funds, or equities, it’s important to consider allocating some of your money to insurance (both life and health). It plays a crucial role in the diversification of risk and financial planning and works for the Insured in several exigencies.

Q. What advice would you give to someone looking to sign up for this service?

A. I encourage everyone to start their savings journey early. Our team is ready to answer any questions and assist you in signing up for the product. You can reach out to us through our social media handles on Facebook and Twitter or contact us via our toll-free number 0800211711 to learn more and purchase the plan.