Equity Bank Uganda has reported a significant surge in life assurance premiums, with the bank's life insurance business generating Shs11.72 billion in the second quarter of 2026. This represents a more than two-fold increase from the Shs5.73 billion recorded in the same quarter of 2025. According to James Sserumaga, the bank's Head of Bancassurance, the growth is largely attributed to the increasing demand for education savings and investment-linked insurance products.
Despite the growth in premium income, the number of life insurance policies declined from 75,000 to 65,000 during the review period. However, Sserumaga noted 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.
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. The growth in premium income also translated into stronger earnings from life assurance, with commission income from life insurance increasing from Shs630 million to Shs1.67 billion during the review period.
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. This development is significant, as it demonstrates the bank's ability to retain customers and maintain a stable insurance portfolio.
The growth in life assurance business also led to an increase in claims payments. 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.
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.
Key points
- Equity Bank Uganda's life insurance premiums more than doubled to Shs11.72 billion in Q2 2026.
- Education-focused policies have become popular among households planning for future school fees and building financial reserves.
- Digital distribution is expected to play a key role in expanding access to life assurance products in Uganda.
