Equity Bank Uganda recorded Shs16.13 billion in bancassurance premiums in the second quarter of 2026, securing an 8.77 per cent share of the market and ranking fourth among banks in Uganda’s bancassurance segment.
The performance was largely driven by strong growth in life assurance, which more than doubled during the period, offsetting a slight decline in non-life insurance premiums.
According to James Sserumaga, the bank’s Head of Bancassurance, the growth reflects changing customer demand and the bank’s efforts to expand insurance access through staff capacity building, improved productivity and wider distribution channels.
Life assurance premiums increased from Shs5.73 billion in the second quarter of 2025 to Shs11.72 billion in the corresponding period of 2026, representing growth of approximately 105 per cent.
However, the number of life policies declined from 75,000 to 65,000 over the same period, suggesting a shift towards higher-value insurance products and larger premium contributions.
Sserumaga said the bank’s strategy had focused on strengthening its bancassurance business by equipping staff with the skills to identify customer needs and promote suitable insurance products.
The bank has also leveraged its branch network, merchant channels and digital platforms to reach more customers, while seeking to increase the value generated from existing policyholders.
Customer retention has been another area of focus, particularly through improved policy persistency, which measures the extent to which customers maintain their insurance policies and continue paying premiums.
Sserumaga said dedicated customer engagement teams had been following up with policyholders to encourage timely premium payments and renewals, supporting growth in insurance income.
The life assurance performance comes amid efforts by insurance providers to strengthen premium value and policy sustainability in a market where insurance penetration remains relatively low.
Non-life insurance, however, recorded a marginal decline, with premiums falling from Shs4.45 billion in the second quarter of 2025 to Shs4.41 billion in the same period this year.
The bank attributed the slower performance partly to changes in its lending portfolio, particularly the growing share of unsecured loans.
Traditionally, non-life insurance products linked to secured lending, including cover for property pledged as collateral, have contributed to premium income. However, the increased uptake of unsecured credit has reduced demand for some of these products.
Despite the slight decline in premiums, the number of non-life policies increased from 659 to 839, indicating wider uptake of insurance products, although at lower average policy values.
The bank is exploring opportunities to improve performance in the segment through stronger policy renewals, increased participation by corporate clients and the sale of higher-value insurance products.
Looking ahead, Sserumaga said digital distribution and microinsurance would be central to the bank’s growth strategy as it seeks to extend insurance services to more customers, particularly those in lower-income segments.
The bank is also exploring products such as micro-medical insurance to broaden access to health-related cover and respond to the needs of its wider customer base.
The latest performance highlights the growing contribution of life assurance to Equity Bank Uganda’s bancassurance business, even as the lender seeks to strengthen its non-life portfolio and expand insurance uptake through digital and other accessible channels.
