UGANDA'S insurance penetration remains the least in the East African region, but insurers are optimistic that with enhanced innovations, the country's performance could be uplifted.
Insurance penetration in East Africa is below 3% of the countries' total gross domestic product. Uganda trails at a mere 0.65%, Rwanda's rate is at 2.3% and Kenya at 2.76% while Tanzania is at 2.2%.
Alex Wanjohi, the AIG Insurance managing director, pointed out that industry needs to new innovations and align the market with the fast changing needs of the already existing and potential clientele.
"Our hope lies in being dynamic in terms of seeking out for what customers deserve in addition to what we offer currently, listening to their needs must remain one of the most respected guiding principles of our operations as insurance players," he said.
Wanjohi was speaking during the insurance brokers' breakfast meeting AIG hosted at Sheraton Kampala Hotel to launch the company's electronic distribution and management platform for AIG's Directors and Officers Insurance cover which seeks to cushion enterprises and staff against claims which may arise from decisions and actions taken within the scope of their official capacities.
The policy primarily pays for defense costs and financial losses, such as court awards resulting from actual or alleged wrongful act claims brought by the stakeholders of the insured business or institution against its directors and officers.
"We structured this product to cover costs incurred in the course of investigations by regulators and public relations consultancy costs to protect the company's and its management's reputation in case of a crisis," he said.
Typical claims under the Directors and Officers policy include allegations of; mismanagement of the company's operations or assets, non-compliance with tax laws, corruption offences, misrepresentation during a sale of company's assets, conflicts of interest, conspiracy and negligence among others.