Addressing the Issue of Trust in the Ugandan Insurance Market

As social media continues to be a popular platform for communication, insurance companies in Uganda are finding it challenging to overcome public distrust. Scrolling through the various social media pages of these companies, one can't help but notice the numerous comments left by the public expressing their skepticism and mistrust of insurance products and companies in general.

For many Ugandans, insurance is often viewed as a scam or a waste of money. Some of the comments left on these pages include, "Insurance is just a way for companies to take our money," and "Insurance only benefits the rich, it's not for us common people” or even, “Insurance is just a scam.”

The lack of trust in insurance companies is not unique to Uganda, as it is a common issue in many other countries. In a study conducted by the Edelman Trust Barometer in 2021, it was found that only 53% of global respondents trust the insurance industry. In Africa, the number is even lower, with only 44%. According to a survey conducted by the Insurance Regulatory Authority of Uganda in 2021, only 3.3% of the population had insurance coverage, with the majority of respondents citing a lack of trust as the primary reason for not purchasing insurance.

According to Mr Kaweesa Raymond a financial analyst with ZED consults Uganda, the lack of trust in the Ugandan insurance market is due to three main factors: a lack of transparency, poor claims handling, and low awareness of insurance products. Insurance companies are perceived as being opaque about their products, services, and claims handling procedures.

“People think that the insurance companies do not pay claims which leads to lack of trust from the claimants hence hindering progress.” He added

This prompted companies like ICEA LION Uganda to invest in faster and more efficient claims processing systems that also provide regular updates to customers on the status of their claims. The company ensures that all reported and deemed payable claims are paid on time as can be evidenced by the payment of over Ugx 50b in claims in 2022.

According to Moses K. Mugalu, the Marketing and Communications Lead, ICEA LION Uganda “Keeping promises, offering excellent customer service and ease of access to information must be a top priority to rebuild trust among Ugandans. ICEA LION has done this by providing a wide range of personalized products with simplified descriptions, clear explanations of policy terms and conditions, ensured that customers can easily access information about their policies and claims. This level of transparency and fairness has built trust and credibility with our customers.”

“With ICEA LION Uganda, you don’t just sign up for policies and pay premiums. You're expertly informed about what you’re signing up for in the simplest of languages forms, we walk the journey with you till maturity and not only pay the claims but ensure they are paid within the promised 5 working days.” He added

ICEA LION Uganda's commitment to customer satisfaction is reflected in the level of investment in customer experience, technological advancement and the testimonials of its satisfied customers. For example, Mark Mundua purchased an Endowment with Profits policy in 2013 and believes it’s the best choice he has ever made. He stated,

"I felt relieved knowing that my family will be taken care of financially in case something happens to me. ICEA LION made the process of purchasing insurance simple, straightforward, and they walked the entire 10 years with me, giving constant updates about my policy. When it matured in 2023, they notified me in time and paid my maturity benefits within 3 working days. I was impressed and I am thinking of signing up for another policy"

The company has invested in faster and more efficient claims processing systems and provides regular updates to customers on the status of their claims. It ensures that all reported and deemed payable claims are paid on time as can be evidenced by the payment of over Ugx 50 billion in claims in 2022.

ICEA LION Uganda offers a variety of insurance products, including life insurance, health insurance, and general insurance which are tailored to meet the unique needs of individuals and businesses, making it easier for customers to choose a plan that suits their specific requirements.