Uganda’s bancassurance sector is undergoing a clear transformation, marked by accelerating adoption, stronger product-market fit, and growing recognition of insurance as a key component of both personal and institutional financial planning. Recent performance data underscores this shift, with several institutions reporting strong year-on-year growth across general and life insurance.
Among the leaders, Bank of Africa Uganda stands out with commission earnings rising from UGX 272 million in August 2024 to UGX 655 million in August 2025—an increase of over 140%. This growth is largely driven by life insurance commissions, which jumped from UGX 115 million to UGX 402 million, while general insurance commissions grew from UGX 157 million to UGX 253 million. These figures far exceed the industry’s average growth rate of 18%, according to the Insurance Regulatory Authority of Uganda.
This growth reflects more than commercial success—it signals a maturing sector that is improving both access and relevance. Historically hindered by low awareness and fragmented distribution, Uganda’s insurance landscape has benefited from bancassurance’s integration within trusted banking relationships. As a result, bancassurance now contributes over 15% of all insurance premium volumes, up from less than 5% five years ago. Insurance is increasingly encountered in familiar financial settings, making it more approachable and accessible.
Success in this space is increasingly linked to how well institutions understand customer behavior across the financial lifecycle. Growth is being driven by data-led segmentation, bundled offerings, and multichannel delivery. Banks that have invested in digital infrastructure, advisory tools, and agile product development are gaining a clear advantage.
The rapid growth in life insurance, in particular, reflects a shift in customer mindset. Once viewed as a low-priority product, life cover is now gaining traction, especially among salaried workers, entrepreneurs, and the emerging middle class. Bank of Africa Uganda saw its life premiums surge from UGX 1.1 billion in August 2024 to UGX 5.8 billion a year later. By contrast, general insurance premiums rose more modestly from UGX 1.3 billion to UGX 1.9 billion. While the life segment grew over 20% industry-wide in 2024, some banks more than tripled that pace by focusing on needs-based products and proactive engagement. The results reflect growing trust in financial protection and in insurance as a tool for long-term planning.
Technology is accelerating this momentum. Banks embedding insurance into digital platforms report higher policy conversion and customer satisfaction. Faster onboarding, simpler processes, and greater transparency are boosting uptake. Retooling frontline staff into multi-product advisors has also raised the quality of customer interactions. In some banks, bancassurance-trained staff now account for over 60% of policy sales—up from less than 20% just a few years ago.
Bank of Africa Uganda’s growth is driven by strategic alignment. With investments in integrated systems, strong underwriter partnerships, and product offerings tailored to both retail and business clients, the bank has created a virtuous cycle of trust, relevance, and delivery. Its standout performance shows what’s possible when bancassurance is treated not as an add-on, but as a core component of the banking model.
The implications are significant. As competition intensifies and margins on traditional banking services shrink, bancassurance offers a credible path to revenue diversification. It also serves a broader societal role. Insurance enhances financial resilience, and by embedding it into everyday banking, institutions are helping to close long-standing protection gaps—especially important in a context of growing climate, health, and business risks.
Looking forward, sustained growth will depend on scaling innovation without eroding trust. Microinsurance, AI-led personalization, and embedded offerings in mobile platforms are poised to drive the next phase. Regulatory support, customer education, and deeper collaboration between banks and insurers will also be critical. The Insurance Regulatory Authority has already begun encouraging more tailored products and innovative channels, creating a favorable policy environment for continued expansion.
Bancassurance in Uganda is no longer a peripheral idea—it has become a central engine of growth and inclusion. Institutions like Bank of Africa Uganda are not just gaining market share; they are helping to redefine financial services in a fast-changing economy, and shaping the future of integrated financial protection across the region.
