The 6th FITSPA Annual Fintech Conference 2024, held at Sheraton Hotel, Kampala, was attended by key stakeholders from the fintech and financial sectors to explore the potential for collaboration in driving growth and innovation. With the theme "Collaboration for Growth," the 2-day conference focused on the importance of partnerships between technology experts, fintech innovators and other sectors like insurance. The Uganda Insurers Association is proud to have been a gold sponsor of this conference.
Aggrey Tumwine, our Information and Technology Officer, moderated the Breakout Session titled "Addressing the Gaps in Service Delivery with Digital Solutions: Mapping the Future of Insurance." The session sought to explore ways to bridge the disconnect between the insurance industry and digital technology. Aggrey highlighted the importance of fostering collaboration between fintech experts and insurance providers to identify digital solutions that could significantly improve service delivery in Uganda's insurance industry. He acknowledged that while Uganda’s financial sector has seen impressive growth, many Ugandans still rely on informal insurance practices, pointing to an opportunity for digital innovation.
Our CEO, Jonan Kisakye, echoed these sentiments by reflecting on the steady growth of the insurance industry, which has maintained an average growth rate of 11% over the past five years. While this growth demonstrates the sector's resilience, Jonan emphasized that it has also led to a sense of comfort, limiting the drive for creativity and innovation. He urged fintech companies to inject fresh ideas into the industry that particularly address key gaps such as distribution and trust. He noted that medical insurance currently covers only about 400,000 Ugandans which is less than 1% of the population, which clearly shows an urgent need for innovations to reach more people. Jonan stressed that fintech partnerships could play a vital role in raising awareness and expanding the reach of insurance services.
Moses Walakira, SACCOnet Project Manager at Uganda Central Cooperative Financial Services Ltd (UCCFS), elaborated on the transformative role that digitization and mobile banking play in enhancing financial inclusion through SACCOs. He explained that SACCOs present a unique opportunity for insurers, particularly in rural areas. This can be explored by using digital platforms and mobile banking to provide access to credit and savings. Through partnerships with fintech providers, UCCFS has integrated insurance into credit services, allowing SACCO members to access credit while simultaneously paying insurance premiums. This innovative approach has helped to reduce credit risks while boosting insurance penetration, demonstrating the power of fintech to improve service delivery and increase financial inclusion in Uganda’s underserved regions.
Dr. Miriam Mutero Musinga, General Manager at C-Care took the conversation further by focusing on health insurance. She highlighted the pressing need for affordable and accessible health insurance solutions, especially for the underserved populations in Uganda. She explained that the lack of a national health insurance scheme forces most Ugandans to pay out-of-pocket for healthcare, leaving a vast opportunity for private insurers to fill the gap. Dr. Musinga pointed out that, while micro-insurance companies do exist, the majority of insured Ugandans are part of corporate plans, leaving everyday workers without adequate coverage. She proposed mobile micro-insurance as a flexible, low-cost solution that could allow individuals to pay premiums and file claims using their mobile phones. She also argued that raising awareness about health insurance is essential in protecting people from the financial strain caused by unexpected medical emergencies.
At the conference it was emphasized that despite the progress made in Uganda’s financial sectors, there are still significant gaps in service delivery, particularly for the underserved population. The insights shared by key industry leaders revealed that collaboration between fintech and industries such as insurance is crucial for the next stage of growth.