FEWER CLIENTS, MORE CASH! School Fees, Investment Plans Fuel Equity Bank’s Sh11.7bn Insurance Surge
Equity Bank Head of Bancassurance, James Sserumaga
Demand for education savings and investment-linked insurance products has emerged as a key driver of growth in life assurance business, helping Equity Bank Uganda more than double life insurance premiums to Shs11.72 billion in the second quarter of 2026.
The bank reported that life assurance premiums rose from Shs5.73 billion in the corresponding quarter of 2025, even as the number of life insurance policies declined from 75,000 to 65,000.
According to James Sserumaga, Equity Bank Uganda’s Head of Bancassurance, the figures indicate that customers are increasingly taking up higher-value policies tied to long-term financial planning needs.
Individual life insurance generated Shs8.97 billion of the total life assurance premiums, underscoring the growing role of personal savings and investment-oriented products in the bank’s insurance portfolio.
Sserumaga said education-focused policies have become particularly popular among households seeking to plan for future school fees while building financial reserves over time.
The bank offers insurance-based savings products that allow policyholders to make regular contributions over a minimum period of five years. Such products combine protection benefits with long-term savings objectives, making them attractive to customers planning for future expenses.
Insurance analysts say education and investment-linked products have become an increasingly important segment of Uganda’s life insurance industry as households seek alternatives for disciplined long-term saving.
Beyond attracting new customers, the bank reported improvements in policy persistency, a key indicator that measures how many customers continue paying premiums over time.
Sserumaga attributed the improvement to proactive customer engagement and follow-up activities aimed at reducing policy lapses.
The growth in premium income also translated into stronger earnings from life assurance. Commission income from life insurance increased from Shs630 million to Shs1.67 billion during the review period.
Meanwhile, claims payments also increased significantly. Life insurance claims rose from Shs877 million in the second quarter of 2025 to Shs1.31 billion in the same quarter of 2026.
The increase reflects both growth in the insurance portfolio and the role of insurers in settling claims when covered events occur.
Industry experts often view claims payments as an important measure of confidence in insurance products because they demonstrate the sector’s ability to provide financial support when policyholders experience loss or hardship.
As insurers compete for market share, digital distribution is increasingly being viewed as a channel for expanding access to life assurance products, particularly among customers in underserved and lower-income segments.
For Equity bank, the next phase of expansion is expected to focus on digital delivery and microinsurance solutions aimed at broadening insurance access. The approach reflects wider trends across the industry as insurers seek to increase penetration and encourage long-term financial planning among households.
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