KAMPALA. Insurance company, Lion Assurance paid, out close to Shs6 billion in claim benefits to 2,130 beneficiaries in 2014, up from Shs5.5 billion it paid to 1,830 beneficiaries in 2013, the company’s managing director, Newton Jazire, has said.
This is on the back of the company’s performance in 2013 when it recorded a net profit of Shs2 billion, up from Shs450 million in 2012.
According to Mr Jazire, the company’s prompt settlement of claims is part of their business strategies to attract individuals, business owners, and proactive insurance brokers.
He said, “Our standard is we pay within 48 hours claims below Shs1m and within five working days on receipt of all supporting documents for claims above Shs20m. In case of inspections within or around Kampala is the same day and if upcountry within 24 hours maximum and 48 hours in case of inconsistences identified.”
Growth in insurance industry
Over the years, the insurance industry in Uganda has registered sustainable growth underpinned by a robust regulatory regime, investment in long-term drivers of growth including research and development, brand and people development, notes the 2013 annual Insurance Regulatory Authority (IRA) report.
In 2013, penetration increased from 0.66 per cent to 0.85 per cent but, according to the IRA, the figure is expected to increase to 1.3 per cent by 2016 as per the regulator’s strategic plan.
This progress is underpinned by the growth in the economy, a facilitative regulatory regime and gradual shift in public perception about the value of insurance, arising from among other things increased public awareness, enhanced complaints redress mechanism, product innovation and continued broadening and deepening of distribution channels.
Penetration level in Uganda’s insurance industry in 2013 according to Insurance Regulatory Authority.
Hours the insurance company takes to pay claims less than Shs1 million.
Net profit of Lion Assurance in 2013.
SOURCE: Daily Monitor