Insurance players have been urged to invest in building and upholding high levels of ethical standards and professionalism, saying it is the answer to the low insurance penetration levels in the country.
Speaking at the Insurance Institute of Uganda (IIU) end-of-year dinner in Kampala recently Ibrahim Kaddunabbi Lubega, the chief executive officer of the Insurance Regulatory Authority, said developing and strengthening professionalism will boost sector confidence among the insuring public and encourage more people to buy insurance.
Uganda’s insurance penetration stands at 0.86 per cent, the lowest in East Africa. Despite having potential of becoming one of the vibrant sectors that can contribute to job creation, Uganda’s insurance industry is still constrained by low levels of professionalism and a wide skills gap.
Following the introduction of the training levy a few years ago, IIU is trying to bridge the skills and professionalism gaps through continuous trainings. It graduated 501 students last week with a certificate in insurance and a certificate in proficiency.
Kaddunabbi also urged the institute to broaden the course units to include bancassurance, medical, pensions and agriculture, among others. The approval of the Financial Institutions (Amendment) Act early this year provided for the introduction of bancassurance, where banks will be allowed to sell insurance products on behalf of insurance companies.
Ronald Zake, the IIU chairman, governing council, acknowledged the skills gap and promised to introduce more trainings. To uphold professionalism, Zake said the institute will soon operationalise the continuous professional development programme that will require all insurance agents to undertake the course before renewing their annual operating licenses.
“For any agent to get IIU clearance, they should prove that they have had continuous professional development in the previous year,” Zake said.
Zake also urged the graduands to uphold a high level of ethical standards and professionalism.
Finance Minister Matia Kasaija, who was the guest of honour, urged the insurance sector to sensitize government about the importance of insuring its assets, saying that it may be ignorant about its value.
“Why doesn’t government insure its assets? Educate it why insurance is important,” Kasaija said.