Kampala — The Insurance Regulatory Authority Executive Director Ibrahim Lubega Kaddunabi has said Uganda's insurance sector is still open, calling upon regional and international investors to come and invest in the sector.
"The Insurance sector has not grown that much compared to developed countries or even to the region neighbours. This has had a big impact on our country whose economy is driven by the private sector. The more, investors join the market, the more capital will be mobilised from the public by the insurance companies to finance projects," Lubega said.
He said there are more investment opportunities in the sector which have not been taken over by the existing Insurance firms.
Kadunabi noted that a vibrant insurance sector plays a vital role in capital mobilisation to finance both Government and the private sector.
He called on Insurance companies to come up with policies like life insurance which he said can help them mobilise more financial resources from the public.
Presenting a paper on the Strategic New Ventures for Financial and Insurance Players, Dr Vincent Ogutu the Vice Dean for Executive Talent Development at Strathmore Business School said Governments should come up with good policies and regulations that support the development of the two sectors.
"Finance and Insurance penetration in some countries is still very poor because of the unfavourable government policies. This should be improved to support the development of the two sectors which are very crucial in the supporting of the economic development of those countries," Oguttu said.
He challenged the Insurance sector and Financial Institutions to come up with products that are cross cutting to the public
Oguttu observed that some financial products being offered by commercial banks are very expensive for ordinary people.
"Financial Institutions should develop products that are pro both the rich, Middle Income and the less privileged ones," Oguttu said.
The Deputy Governor Bank of Uganda Dr Louis Kasekende in his speech read by the Bank of Uganda Executive Director /Personal Assistant to the Governor Mary Katarikawe said Uganda is on good path because of the recently amendment of the Financial Institutions Amendment Act 2016.
"Our policies are getting better with the new Amendment Act that paved way for the Introduction of Islamic Banking , Agent Banking and Bancassurance in our market," said Kasekende.
Kasekende said Bank of Uganda is in advanced stages of issuing regulations that will provide guidance on the operation of Islamic Banking and Agent Banking .It is envisaged that by the end of 2016 Bank of Uganda will have licensed banks to operate as fully fledged Islamic banks to offer Islamic financial products through windows .
This was during the Banking, Financial and Insurance Expo 2016 that was held at the Golf Course Hotel in Kampala by Royal Way Media.