Equity Bank Uganda has reported a significant increase in life insurance premiums, which jumped to Shs11.72 billion in the second quarter of 2026. This represents a more than doubling of premiums from Shs5.73 billion in the corresponding quarter of 2025. The growth is attributed to increasing demand for education savings and investment-linked insurance products.
According to James Sserumaga, Equity Bank Uganda's Head of Bancassurance, the surge in premiums indicates that customers are 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, highlighting 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. These products combine protection benefits with long-term savings objectives, making them attractive to customers planning for future expenses.
Despite the growth in premiums, the number of life insurance policies declined from 75,000 to 65,000. However, Sserumaga noted that the bank has seen improvements in policy persistency, a key indicator that measures how many customers continue paying premiums over time. This improvement is attributed to proactive customer engagement and follow-up activities aimed at reducing policy lapses.
The growth in premium income has 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, with life insurance claims rising from Shs877 million in the second quarter of 2025 to Shs1.31 billion in the same quarter of 2026.
Industry experts view claims payments as an important measure of confidence in insurance products, as 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. This approach reflects wider trends across the industry as insurers seek to increase penetration and encourage long-term financial planning among households. The bank's growth in life insurance premiums is a positive indicator for Uganda's insurance industry, which is seeing increasing demand for education and investment-linked products.
Key points
- Education savings and investment-linked insurance products drive growth in life assurance premiums.
- Equity Bank Uganda reports Shs11.72 billion in life insurance premiums for the second quarter of 2026.
- Digital distribution and microinsurance solutions to be key areas of focus for Equity Bank's future expansion.
