Opinion: Insurance Agents – The Unsung Heroes of the Insurance Sector in Uganda

In Kampala, it is common to come across an insurance agent. You might meet one at a taxi stage, outside a supermarket, in your office, or even at a religious gathering. They greet you with a smile, ask if you have heard about insurance, and take a few minutes to explain how it can benefit you, your family, or your business.

Within a few minutes, they will be answering all your questions, providing advice, and shouldering the responsibilities of the insurance industry as representatives. For many Ugandans, insurance agents are their first introduction to the insurance world. It is reported that agents make up 60% of the entire insurance industry workforce in Uganda.

According to the 2024 sector performance report from the Insurance Regulatory Authority (IRA), the Gross Written Premium (GWP) rose by 12% to $485 million. During the 2024 Insurance Agents of the Year Awards, Jonan Kisakye, CEO of the Uganda Insurers Association, reported that 50% of insurance business was conducted through agents, while banks and brokers handled the remaining half.

In 2014, GWP was approximately $135 million. So, what changed?

Over the years, the IRA has been deliberate in shaping the image of insurance in Uganda, prioritising the protection of consumers and policyholders by ensuring that agents are both competent and professional, while also making certain that insurers fulfil their obligations to consumers efficiently and promptly.

Unlike in the past, the current breed of insurance agents possesses strong insurance knowledge, is trained in soft skills, holds the necessary licenses, and is empowered. This enables them to play a significant role in raising awareness, especially in the informal sector, which is the most underserved yet the largest source of employment and livelihood. 

Who is an insurance agent?

Any licensed individual who acts as an intermediary between insurance companies and customers helps individuals and businesses select suitable insurance policies, explain coverage options, and assist with policy renewals, modifications, and claim processing.

To become an agent, you only need an ordinary secondary school qualification and an award of the Certificate of Proficiency in Insurance (COP) from the Insurance Training College (ITC).  

Is agency insurance worth it?

The insurance industry is a game of experience and growth; the longer you remain and grow, the bigger the commissions.

With 15% to 20% of GWP paid out in commission to intermediaries, i.e agents, brokers, and bancassurance channels, the unsung heroes are singing their way to the bank. If $485 million is recorded when the penetration rate stands at 0.88%, the future looks even brighter for agents in a market with significant growth potential. GWP has grown between 10% and 15% annually between 2014 and 2024.

How are insurance agents prepared to thrive?

Training: Agents can access multiple sales training programmes offered by the insurance companies they represent and the Insurance Training College (ITC). These programmes address critical topics focused on individual development and relationship management.

Agents must accumulate a minimum number of Continuous Professional Development Points (CPDs) each year before renewing their licenses. CPDs serve as evidence of ongoing learning.

Professionalism: Associations and membership bodies play a vital role in promoting the professionalism of their members. Agents in Uganda are represented by the Uganda Insurance Agents Association (UIAA), ITC, and the Uganda Insurers Association (UIA).

Claims payment: Good regulation of the sector has created a conducive environment for paying genuine claims on time, which helps agents sell confidently and build trust among the public.

Although they do not wear hero caps, agents display grit and strength, quietly powering the sector forward by building trust and strong relationships. They are the sector’s unsung heroes!

Saul Sseremba, the author, is the CEO/Principal Insurance Training College