INSURANCE: A CRITICAL FACTOR IN DEVELOPING UGANDA

 Just last year a senior six student failed to sit his final exams . The reason was because the parents failed to raise fees. That is how many dreams are shattered. Life is full of uncertainties and risks. Just this year we witnessed a fuel tanker burst into flames and killing over 20 people. What about the Kiteezi land fill  tragedy? What about the  accidents that happen on  a daily basis? The worst thing that  is a tragedy happening when we are not prepared for it. Lives have been lost in hospitals simply because the patient did not have an adequate insurance cover. Lack of insurance also directly impacts our saving culture .This is because the little we earn is likely to be diverted to emergencies. Who remembers the torrid time we went through as a nation and the world during Covid 19 and lock down? As developing countries we are so vulnerable to a number of shocks compared to the developed world.

According to John Ssebaana Kizito in his book, Insurance Basics, he noted that insurance industry is a service to the people like any other service. The necessity of insurance arises out of the fact that the world presents so many risks at individual, family, community, national and global levels. So to reduce vulnerability there is a need for an organised way of minimising and managing these risks. With a low insurance uptake in Uganda, it is important to ask some questions.

Is the low uptake as a result of the large informal sector?

Is the low uptake a result of the large subsistence sector?

Is the low uptake a result of lack of awareness about insurance?

Is it a question of cultural factors that limit growth of the insurance sector?

No matter the reasons it is critical that we amplify the message of insurance. The fact that one has not faced a risk such as sickness, loss of a job or a fire does not take away the risks that can emerge. Life itself is a risk and the wisest choice we can make is to proactively prepare for these risks.

From the above discussions it is evident that discussions about the importance of insurance can not be given a lip service. Since life is risky we have to devise ways on how to manage them and the best option is to amplify the message of insurance in our communities. Remember awareness precedes transformation.

Phillip Kiryowa

Personal Finance Coach 

Advanced Empowerment Link

+256752615916

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