Uganda’s insurance industry is entering a phase of expansion, driven by capital-intensive investments in oil and gas, infrastructure, and agriculture, even as insurance penetration remains low at around 1 percent of GDP.
Speaking at the official rebrand of Marsh Uganda to OLEA Uganda Insurance Brokers, Insurance Regulatory Authority (IRA) CEO Ibrahim Kaddunabbi Lubega said the transition reflects structural shifts in Africa’s insurance sector rather than a single corporate deal.
‘Across Africa, insurance uptake averages about 3 percent, compared with over 7 percent globally. Yet the region remains one of the fastest-growing insurance markets,’ he said, citing economic expansion, infrastructure projects, and rising risk awareness as key growth drivers.
On January 30, Kaddunabbi noted that Uganda is entering a period of long-term, complex investments that require advanced risk management, particularly in oil and gas, transport corridors, and energy infrastructure.
‘These projects present risks from construction and environmental liabilities to operational safety and business interruption. Insurance is critical for bankability and investor confidence,’ he said.
Infrastructure development is a major contributor to insurance demand, he added, with roads, energy, water, and urban projects relying on effective risk transfer to secure financing.
Agriculture, which employs most Ugandans, is another growth area. According to the Ministry of Finance, Uganda’s agricultural insurance scheme has disbursed over Shs40 billion to 885,000 farmers, with a total insured value of Shs2.47 trillion.
Kaddunabbi said brokers will play an increasing role in expanding crop, livestock, and agribusiness insurance solutions.
Despite these opportunities, low insurance penetration highlights the need for stronger brokerage capacity, trust, and innovative products.
The rebranding follows Pan-African broker OLEA Insurance Solutions’ acquisition of Marsh Uganda, part of a wider trend of regional players expanding as global firms consolidate.
Fiona Magezi, formerly Head of Client Servicing at Marsh Uganda, was appointed Managing Director of OLEA Uganda, while Paul Muhame became Board Chairman. OLEA operates in 26 African countries and offers life and non-life insurance, including property, health, transport, cyber, and political risk coverage.
Kaddunabbi said regulatory oversight and professionalism are essential for sustained growth.
‘Investors would not commit resources without confidence in the market. Brokers must evolve from transactional roles to strategic risk management partners,’ he said.