In Summary

This is likely to change as fsd Uganda (Financial Sector Deepening Uganda) has signed a partnership with Insurance Regulatory Authority (IRA) to strengthen the legal and regulatory micro-insurance framework to support low income people.

Kampala.

When there are economic shocks in Uganda, low income people are affected most. Unlike the well-to-do, who are insured the low income people, in most cases, cannot afford the policies.

This is likely to change as fsd Uganda (Financial Sector Deepening Uganda) has signed a partnership with Insurance Regulatory Authority (IRA) to strengthen the legal and regulatory micro-insurance framework to support low income people.

The two-year Memorandum of Understanding (MoU) signed last week addresses the institutional capacity of IRA to develop regulations that will deepen micro- insurance and create awareness across the various stakeholders.

Fsd Uganda’s chief executive officer Christopher Musoke after signing the MoU at the IRA offices, said: “We believe that appropriate insurance products for low income people like health, life and agriculture needs would help them to overcome the economic shocks.”

“We want insurance companies to develop and design policies that are fit for the low income earners that they can afford. They may be able to pay monthly or weekly but still get similar services like the well-to-do,” Mr Musoke added.

Regulation
IRA’s chief executive officer Ibrahim Kaddunabbi Lubega said: “This partnership will strengthen capacity in IRA in order to address the bottlenecks affecting financial deepening. Specifically we are looking at micro insurance which is consumed by the low income people.”

The support will facilitate and increase awareness which is not only one of the major bottlenecks the industry is struggling with to increase penetration.

“People fall sick and instead go to their beds and sleep. But now they should know that there is a small health policy that can be bought at a small fee to seek medical services,” Mr Lubega shared.

Other policies
The other micro-insurance regulations IRA will look at are in the area of agriculture insurance for the smallholders, motor third party for the Boda-Boda, workers compensation policies for the informal sector.

dnakaweesi@ug.nationmedia.com