Kampala, Uganda | THE INDEPENDENT | Insurance companies in Uganda paid out over 820.1 billion shillings to various customers in claims in 2023.

The Insurance Regulatory Authority of Uganda (IRA) said the payments amounted to more than half (51.17 percent) of the total amount of money that the insurance policy holders paid to the insurance companies (Gross Written Premiums).

The payments saw an increase by a third compared to the claims paid out the year before, which amounted to 618.71 billion, according to the Insurance Sector Performance report for the year 2023.

IRA Chief Executive Officer, Ibrahim Kaddunabbi Lubega, says the sustained and high increase in the payouts is due to the policy measures aimed at ensuring that no insurance company fails or refuses to pay a claim without a genuine reason.

Kaddunabbi Lubega however said his Authority is also aware of fraudulent claims which they have to guard against. He revealed that many have been arrested and prosecuted.

He said the refusal to pay a genuine claim violates the industry objectives and can attract sanctions.

Haji Kaddunabbi says that the focus on claim payments by the industry was informed by the fact that when the public feels the insurance companies are reluctant to pay, they also lose the trust in the industry as not meant to serve the needs of the civilians.