Stakeholders in the insurance sector should exercise a high level of integrity and honesty to ensure a steady and sustainable growth of the business, according to Saul Seremba, the CEO of the Insurance Institute of Uganda (IIU).
He said this recently during a dinner to crown the IIU northern region membership interface activities at Bomah hotel, Gulu. “Building confidence in this business requires insurance companies to deliver on what they promise their customers,” he noted.
Lack of honesty in insurance business normally manifests when companies unscrupulously decline to honour genuine customer claims, while on the clients’ side, fraudulent claims are presented before the companies with a motive of fleecing them.
The 2015 KPMG East Africa insurance fraud risk survey indicates that claims-related fraud is estimated at about $500,000 (Shs1.8b) annually.
Seremba noted that selling insurance, being a purely services business, must be handled carefully in strict conformity with the code of conduct because any slight threat against the existing and prospective clients has a significant negative bearing on business.
He also called on players in the industry to take up training opportunities at IIU to attain skills and competencies in insurance. The institute currently runs courses such as certificate of proficiency and certificate in insurance.