Uganda Investment Authority Women Entrepreneurs Network HOTEL AFRICANA, KAMPALA Thursday, March 16, 2006

Insurance& Risk Management

How do you CHOOSE your Insurer?

Criteria for an Insurer 1. F inancial Strength 2. M anagement Quality 3. C laims Settlement Attitude 4. R einsurance Only Then – Price/Premium

Risk Probability of Occurrence of an Event leading to: Loss or Disability of Life Loss or Disability of Life Loss of or Damage to Property Loss of or Damage to Property

Risk Categories Speculative Risk Speculative Risk Pure Risk Pure Risk

Speculative Risk Result = Loss or Profit Result = Loss or Profit Examples: Examples: Buying Shares Buying Shares Lending Money Lending Money Banking Money Banking Money Others Others

Pure Risk Result = Loss (Never Profit) Result = Loss (Never Profit) Examples: Examples: Fire Fire Motor Accident Motor Accident Liability Liability Others Others

Risk Management Identify Identify Control Control Transfer (Insurance) Transfer (Insurance)

Insurance  A FIXED & KNOWN COST (LOSS) IS INCURRED TODAY BY PAYING PREMIUM”  THE ADVERSE EFFECT OF A FUTURE PROBABLE (UNCERTAIN) LOSS IS MINIMISED

Insurance Industry Uganda Government – Insurance Act 1992 Uganda Government – Insurance Act 1992 Customers Customers Insurance Companies Insurance Companies Agents & Brokers Agents & Brokers Loss Adjusters, Investigators & Assessors Loss Adjusters, Investigators & Assessors

Uganda Insurance Market Size

INSURANCE FOR UGANDA BUSINESS WOMEN

Uganda Insurance Industry Troubled History Currency Depreciation Currency Depreciation Mistrust Mistrust Misconception – Customers Vs Insurers Misconception – Customers Vs Insurers Low Skills Low Skills Inaccuracy of Values Inaccuracy of Values Negative Claims Settlement Attitude Negative Claims Settlement Attitude Insufficient Law – Overseas Insurance Insufficient Law – Overseas Insurance

MOTOR Comprehensive Third Party Liability

DWELLING HOUSE Householders House Owners Personal Liability

FIRE Fire Explosion & Lightning Earthquake incl. Tsunami Flood Malicious Damage Strikes & Riots Business Interruption

WORK ACCIDENTS Workers Compensation Employers Liability

ACCIDENT & HEALTH Individual Accident Group Accident Family Accident Children Accident Hospital Cash MFI Protection

TRAVEL Leisure Travel Business Travel Family Travel Education Travel

TRANSPORT Marine Cargo Air Cargo Inland Cargo Transport Delay Hull & Liability

CRIME Burglary Money / Cash-in-Transit Employee Fraud Computer Fraud Bankers Blanket Bond Arson

LIABILITY Public Liability Product Liability Professional Liability Management (Directors & Officers) Pension Trustees Liability

ENGINEERING Machinery Breakdown Business Interruption Electronic Breakdown Data Reconstruction Stock Deterioration

PROJECTS Construction Risks Machinery Assembly Project Delay Construction Plant

CRISIS Terrorism Sabotage Kidnap & Ransom Product Contamination

Thank You Partnership