Education and investment plans drive surge in life assurance premiums

What the report says

Equity Bank Uganda reported a sharp increase in life assurance premiums in the second quarter of 2026, driven largely by demand for education savings and investment-linked insurance products. According to The Observer, premiums more than doubled to Shs11.72 billion from Shs5.73 billion in the same period of 2025, even though the number of life insurance policies fell from 75,000 to 65,000.

The bank’s Head of Bancassurance, James Sserumaga, said the results suggest customers are choosing higher-value products tied to longer-term financial planning. The article says individual life insurance contributed Shs8.97 billion of the total, with education-focused policies proving especially popular among households aiming to plan for school fees while also building savings.

The report also notes that Equity Bank Uganda offers insurance-based savings products requiring regular contributions over at least five years. Beyond premium growth, the bank said policy persistency improved, which it linked to customer follow-up efforts intended to reduce lapses. Commission income from life insurance rose from Shs630 million to Shs1.67 billion, while claims payments increased from Shs877 million to Shs1.31 billion over the comparison period.

The Observer also placed the figures in a wider industry context, saying education and investment-linked products are becoming more important in Uganda’s life insurance market as households look for disciplined saving options. The bank said future expansion is expected to emphasize digital delivery and microinsurance to widen access, especially among underserved customers.