Uganda's insurance industry could register a 50 per cent decline in premiums owing to the Covid-19 pandemic, preliminary indicators by the Insurance Regulatory Authority (IRA) have shown.
According to a report released by IRA on Tuesday, the insurance industry, like other sectors, has been battered by Covid-19 with the impact expected to be felt in the second quarter ending June.
The insurance industry in the second quarter of 2019 recorded a total of Shs495.9b in gross written premiums.
"The slowdown in economic activity and the near cut-off of the public's earning potential means low disposable income and minimal allocation to insurance will affect aggregate performance this year," he said.
The demand for inclusive insurance solutions especially agricultural insurance, Mr Kaddunabbi said, is expected to grow as people look for more ways of hedging themselves against potential losses from risks such as floods, locusts, drought, among others.
