COVID-19: Ugandans rush to buy life insurance coverage

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By the close of quarter two (April, May, June), life insurance companies saw a 20% increase in gross written premiums from a section of Ugandans as the deadly coronavirus pandemic put the world on its knees. 
 
A premium is the total amount of insurance customers (or the insured) are required to pay for insurance coverage on policies issued by a company during a specific period of time.
 
COVID-19 has got a section of Ugandans thinking about the value of life insurance. Prior to this pandemic, even educated elites had been procrastinating the purchase of life insurance. And even when they purchased, the insurance cover had always been grossly inadequate.
 
COVID-19 could most likely change this mindset. Insurance coverage for this segment increased by 20.5% to sh149b. Overall, insurance companies raised a total of sh534b in gross written premiums. This represents a 7.7% jump compared to the same period last year. 
 
According to the Insurance Regulator Authority report for the period under review, all insurance segments posted growth despite the disruption caused by the deadly pandemic. 
 
Source: Insurance Regulatory Authority
 
For instance, non-life insurance, otherwise known as general insurance, registered a 3.4 percent increase in gross written premiums from sh336b in 2019 to sh347b in 2020. Health membership organizations recorded sh37b in 2020 compared to sh35.6b in the same period in 2019.
 
Microinsurance, however, recorded the highest growth in the entire sector, tallying at Shs207m from only Shs29m in 2019.

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