Sanlam Life Insurance (U) Ltd has said that it will offer a bonus of 8% to all its policyholders after the insurance company recorded a 42% growth in its business in 2018 with a 58% growth in assets.
According to the Company’s Chief Executive Officer John Lintari, the growth is attributed to increased awareness in the market for life insurance and the entry of banks as new channels of distribution mainly through Bancassurance.
“Our performance in the life business is well above the industry growth which stood at 18% in the same financial year and signals the rebirth of life insurance following the demerger from General Insurance business,” said Lintari during a press conference held at the Company offices in Bugolobi.
Since October 2017, the Insurance Regulatory Authority (IRA) has licensed 17 commercial banks to operate as bancassurance agents and there are more partnerships that continue to be developed between insurers and banks to ensure accessibility to insurance products.
Lintari noted the continuous work of the company’s committed intermediaries, mainly agents, who for the past 5 years have been winning big at the annual agent of the year awards organized by the Uganda Insurers’ Association.
Life Insurance business in Uganda grew by 29% last year, a clear indication that the business is on the upsurge and may soon become the biggest contributor to growth in the entire insurance industry.
Anthony Kirimi the Sanlam Life Insurance (U) Ltd Chief Finance Officer said that the government of Uganda should exempt life insurance business from paying corporation tax, and, come out clear on taxing life insurance.
Sanlam will in the next few months celebrate 10 years of existence.
Lintari said the biggest challenge which is still facing the insurance industry in Uganda is low awareness and general mistrust in relation to compensation and payment of claims.
“In order to further increase insurance penetration from the current 0.84% of the GDP, the industry as a whole must continue to educate and sensitize the market on the benefits of insurance especially when misfortunes occur.
“The industry must also honour their obligations on time so that the market can gain confidence in insurance products and services,” said Lintari.
BY PAUL TENTENA