Insurance Industry Performance Highlights FY/23

Industry Gross Written Premium (GWP) with and without Medical cover grew at similar rates of 10% from UGX 1,402 Billion to UGX 1,544 Billion, and from UGX 1,116 Billion to UGX 1,238 Billion respectively when comparing Q4 2022 to Q4 2023.

Comparing Q4 2022 and Q4 2023, Non-Life business contribution to the industry dropped by 4% from 64% to 60%, while the Life business contribution grew by 4% from 36% to 40%. In the Life business, there was a 21% growth in GWP. However, profit before tax dropped by 27%. In the Non-Life business, there was a 4.1% growth in GWP comparing Q4 2022 and Q4 2023. However, Net Written Premium, net claims incurred and net commission changed by 1%, 47% and 31% respectively.

Non-Life companies' GWP inclusive of medical grew by 4.1% from UGX 895.58 Billion in Q4 2022 to UGX 932.5 Billion in Q4 2023. Non-Life companies' GWP exclusive of medical increased by 3% from UGX 707.75 Billion in Q4 2022 to UGX 727.7 Billion in Q4 2023. There was a 21% increase in GWP with Medical for the Life companies from UGX 506.58 Billion in Q4 2022 to UGX 611.5 Billion in Q4 2023. There was a 21% increase in GWP without Medical for the Life companies from UGX 419.68 Billion in Q4 2022 to UGX 509.9 Billion in Q4 2023. 

Medical GWP increased by 12% in Q4 2023, rising from UGX 274.73 Billion in Q4 2022 to UGX 306.34 Billion in Q4 2023. The GWP for Q4 2023 increased by 10% compared to the same period in 2022. It grew from UGX 1,402.17 Billion in Q4 2022 to UGX 1,544.06 Billion in Q4 2023. All product lines showed growth in GWP, except for engineering, bonds, and annuity. These three product lines declined by 38%, 28%, and 4% respectively.

Comparing Q4 2022 & Q4 2023, ceded premiums increased from UGX 493.88 Billion to UGX 540.59 Billion. There was a 10% increase in NWP from UGX 908.29 Billion in Q4 2022 to UGX. 1,003.47 Billion in Q4 2023. Lines whose NWP declined were medical, Personal Accident, Fire and Annuity at 12%, 3%, 2% and 4%.

Gross Claims increased by 24% from UGX 605.76 Billion in Q4 2022 to UGX 753.42 Billion in Q4 2023.

Total expenses increased from UGX. 537.88 Billion in Q4 2022 to UGX. 624.54 Billion in Q4 2023. Individual Life, Motor and Medical continued to register the highest total expenses in both periods. Personal Accident and Workers Compensation registered a reduction in total expenses.

Comparing Q4 2022 and Q4 2023, Individual Life accounted for the highest product market share at 20%. This was closely followed by Medical at 19.8%, and Motor at 12.9%. Medical continued to account for the highest Gross Claims paid at 34.5%, followed by Individual Life at 16.6%, Fire at 11.2%, and Motor at 10.1%.

Ceded premiums declined by 0.2% from 35.2% in Q4 2022 to 35% in Q4 2023. Crops & Livestock, Engineering, and Fire contributed the highest premiums ceded in both periods. There was a reduction in premium ceded on Bonds, Liability, Workers’ Compensation, Group Life, and Credit Life. Individual Life registered the least premiums ceded.

Industry retention increased by 0.2% from 64.8% in Q4 2022 to 65% in Q4 2023. In Q4 2023, Medical registered the highest loss ratio on both GWP and NWP. Other lines that recorded a high loss ratio on GWP were Miss. accidents at 74% and fire at 56.4%. The loss ratio on the net premium was also high for Engineering at 58%, Fire at 50%, and Theft & Burglary at 48.8%. Bonds had the lowest loss ratio in both instances.