Insurance Industry News

Insurance news in Uganda shows oil sector trend

Brokers are focusing on the opportunities that the new industries are providing in the country.

oil insurance newsThe recent insurance news that has been arriving from Uganda has been based on the interest that brokers have been taking in the blossoming oil and gas sector in the country.

Training has been started to ensure that insurance brokers understand the risks and how to mitigate them.

The Uganda Association of Insurance Brokers (UAIB) chairman, Maurice Amogala, who is also the CEO of AON Uganda, Ltd., has stated that they are already dedicating themselves to training staff on understanding what it takes to protect against the types of risks that are inherent within the oil industry. This insurance news is new to the region, as are these sectors, themselves, so it is important that there are professionals who are trained, knowledgeable, and prepared for what will be required of them in order to take advantage of this opportunity.

This insurance news comes from the discovery of enormous deposits in the Albertine, Uganda region.

The plan is to begin oil production in 2018, which will be demanding on both the oil and gas sectors, as well as on the insurance industry. According to Amogola, “We expect many risk-assessment jobs to be created in this sector and more of our colleagues will get employed because more companies have come in. So, we want to train and understand the risks that are likely to come up in the sector.” This statement was made following the annual general assembly of the UAIB, which was held in Kampala at the Protea hotel.

Amogala explained that among the primary reasons that the insurance industry has held relatively low service penetration in Uganda is due to the business actions of the government. As the government is the largest business in the African nation and because it doesn’t insure the majority of its assets, it means that most of the country’s businesses – that is, those represented by that entity – do not have coverage.

This makes the most recent insurance news even more important as it represents a notable shift in the business practices. Although coverage is still seen as a product for the rich, according to Amogala, brokers are now seeing a notable change as these massive new oil and gas sectors – and their associated risks – which could also alter the overall opinion of coverage as a whole.

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