A Presentation Organized By At The 32nd CEO’s Breakfast Meeting Organized By The Insurance Regulatory Authority of Uganda “ THE UGANDA INSURANCE MARKET – CUSTOMERS PERSPECTIVE” 25th August,2016

The Presenter Brief Background: Presenter: Ronald Zake. Joined insurance industry in 1990 (worked for 23 years) Worked as Underwriter / Manager / CEO of various insurance firms Owned and worked with brokerage company Owned and worked with an insurance agency Associated with a Loss Assessment and Adjustment firm Chairman and President of the Insurance Institute Currently Own and run a funeral management company.

The Role of the Insurance Regulator Regulators play a key role in the stabilization and growth of the insurance sector the world over. The Insurance Regulatory Authority of Uganda (IRA) was established under section 14 of the Insurance Statute 1996 now The Insurance Act,(Chap213) Laws of Uganda, 2000(Insurance Act). The main object of the Authority is to ensure the effective administration, supervision, regulation and control of the business of Insurance in Uganda. The Insurance Regulatory Authority of Kenya (IRA) previously a department of insurance, was also established by statute and started operations in 2007. Its main objects are regulation, supervision, formulation /enforce standards, development of the insurance sector, ensure prompt claim settlements and investigate and prosecute insurance fraud. Today insurance penetration in Uganda is at 0.85% and Kenya 3%.

What challenges do we face as an industry? Low trust and confidence / insurance understanding from the insuring public. Low trust among the insurance players. Low levels of professionalism and ethical conduct. Low enforcement of standards. High and growing insurance fraud. No research on new products and premium rates. Slow development and lack of appreciation of IT. High taxes (VAT) and no or few tax incentives. No lobby group. Industry appears insignificant towards contribution to the national economy / employment and low visibility. Have no clear long term plan and growth strategy.

What do we need to do? Strong and stable regulator to give market confidence and direction. Need to bench mark with other markets – Kenya, South Africa. Have more dialogue between the insurance players – Think tank. Professionalize the industry . Consumer education not adverts. Publicize claim settlements. Educate the different interest groups. Walk the talk – Pay claims . Establish a research body on products and premium rates, IT. Establish an Insurance fraud investigation and prosecution unit. Embrace IT. Work out partnerships – Banks, HMO’s, Mobile Telephone Companies.

What do we need to do? Lobby for more funding in the industry and less tax on insurance products. Have more mandatory insurances – Health , Pensions, accident. Develop an industry master plan for the next 10 -20 years. The Kenyan case: The regulator is now focusing and funding the industry in terms of: Consumer Education. Promotion of market development- Flexibility / Mergers / Product development . Research. Fraud control. Is our regulator well positioned and funded to play its role?

What is your institute doing? We are reviewing our strategic plan – and this should align to the general industry plan. We are having our first local professional diploma sitting this year. Work with regulator to have minimum insurance qualifications for given technical positions. The Continuous Professional Development ( CPD ) to start this year with the agents , then roll out to other members and CEO’s next year. Code of conduct to be operationalised by year end. To carry out joint consumer trainings with regulator countrywide. To carry out joint capacity building programmes in the industry with the regulator. Bench marking and signing partnership/collaboration MOU’s –SA, India,Kenya,Australia

College of Insurance Nairobi - Project 2000 seater conference 200 Room 5 Star Hotel 1000 vehicle parking 5 lecture facilities

Questions? THANK YOU.