Insurance brokers have challenged insurance companies to address longstanding trust issues and strengthen partnerships with independent brokers, warning that strained relationships could undermine efforts to grow Uganda’s insurance industry.
Ritah Mutesi Kabayiza, the chairperson of the Insurance Brokers Association of Uganda (IBAU), said stronger collaboration was necessary because brokers play a critical role in advising clients, identifying risks and helping them obtain appropriate insurance coverage.
She said some insurance companies had previously preferred dealing directly with their agents, partly because agents operate under their control, unlike independent brokers who represent clients’ interests.
“There have been trust issues in the past. Some insurers have thought that it is easier to deal with their own agents because brokers are independent. They represent clients, and that is the difference between us and agents,” Kabayiza said.
She was speaking at a dinner hosted by the National Insurance Corporation (NIC) for members of IBAU under the theme, Collaboration as a Catalyst for Growth.
Kabayiza said brokers should not be viewed merely as intermediaries who bring business to insurance companies, but as long-term partners who support clients throughout their insurance journey.
She argued that business generated through brokers tends to offer insurers greater sustainability because brokers maintain relationships with clients beyond the initial purchase of insurance policies.
According to her, brokers also help improve insurers’ loss ratios by advising clients on risk management and ensuring their insurance needs are properly addressed.
“Insurance brokers do not only bring business, but they continue to support the risk journey of the client. The longevity of the client with an insurer will be longer because a broker is not as transactional as probably other intermediaries,” she said.
She added that brokers play an important role in demystifying insurance by helping clients understand insurance products and the risks they need to protect themselves against.
Kabayiza said Uganda currently has 58 registered insurance brokerage firms, which she believes have sufficient capacity to serve the available market.
However, she said this did not rule out the licensing of additional brokers as the industry expands.
The engagement comes amid efforts by insurance industry players to strengthen partnerships and expand insurance uptake in Uganda, where millions of people remain outside the insurance system.
Allen Amoko, the Chief Executive Officer of NIC Life, said technology would be central to the company’s efforts to extend insurance services beyond major towns and reach underserved communities.
“You can’t reach every part of this country by way of foot soldiering. So we need to embrace technology,” Amoko said.
He revealed that NIC Life would soon unveil a public application through which customers can interact with the company and access services using self-help features.
The move comes as insurance companies face pressure to develop affordable and accessible products for Ugandans who have traditionally remained uninsured.
Amoko said NIC Life was also seeking to strengthen its partnerships with insurance brokers to develop products that respond to the needs of different categories of Ugandans.
He said the engagement was part of efforts to reposition NIC as a modern insurance provider while retaining its legacy in Uganda’s insurance market.
Amoko said the company was renewing its commitment to improving customer service, strengthening relationships with brokers and extending insurance access across the country.
“We are coming out with a new promise to the market in terms of client service, walking the real partnership journey with them and making sure that we take insurance to the lowest town in this country,” he said.
He added that collaboration between insurers and brokers would be essential in developing products capable of attracting people who have traditionally remained uninsured.
