Insurance laws Uganda
Uganda's insurance sector is governed by the Insurance Act, 2017 (Act No. 6 of 2017), which modernized the regulatory framework to enhance oversight, promote market growth, and protect policyholders.
🏛️ Regulatory Authority
Insurance Regulatory Authority of Uganda (IRA): Established under the Insurance Act, 2017, the IRA is responsible for regulating and supervising the insurance industry in Uganda. Its objectives include promoting a sound, efficient, and stable insurance sector, protecting policyholders, and fostering inclusive insurance markets
📜 Key Provisions of the Insurance Act, 2017
1. Licensing and Operations
Entities must obtain a valid license from the IRA to conduct insurance, reinsurance, or health membership organization (HMO) business in Ugand.Foreign insurers can operate in Uganda but require prior approval from the IR.
The Act outlines various license categories, including insurers, reinsurers, HMOs, and microinsurance organization.
2. Capital Requirements and Financial Stability
Licensed insurers and HMOs must maintain prescribed minimum paid-up capita.
Insurers are required to hold a security deposit equal t 10% of their paid-up capital in an approved commercial ban.
The Act mandates that insurers maintain financial soundness to meet liabilities and conduct business according to sound insurance principle.
3. Insurance Intermediaries
Individuals and entities acting as insurance intermediaries (e.g., brokers, agents) must obtain a valid license from the IR.
The Act prohibits unlicensed intermediary activities and outlines penalties for non-complianc.
4. Consumer Protection
The IRA is tasked with protecting the interests of policyholders and potential customer.
Regulations are in place to ensure transparency, fair treatment, and the provision of accurate information to consumer.
5. Policyholders' Compensation Fund
The Act provides for the establishment of a Policyholders' Compensation Fund to compensate policyholders in case of insurer insolvenc.
The specifics of the fund's governance and operations are detailed in regulations prescribed by the Ministe.
6. Training and Development
The Insurance Training College is established to oversee insurance training in Ugand.
An insurance training levy is imposed on insurers and HMOs to fund training, examination, certification, and registration of licensee.
📊 Industry Snapshot (as of January 2025
As of January 2025, the IRA authorized 143 entities to conduct insurance business in Uganda, includig:
2 reinsurance companes
20 non-life insurance companes
9 life insurance companes
4 microinsurance companes
1 Health Membership Organization (HO)
49 insurance brokrs
6 reinsurance brokrs
20 bancassurance agets
Various loss assessors and risk advisrs
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