Behind the Surge in Equity Bank Uganda’s Bancassurance Portfolio

November 3, 2026 in Business, Companies, Financial Services by Editor

Equity Bank Uganda’s life assurance premiums more than doubled to UGX11.72 billion in Q2 2026 despite a 13 percent decline in policy numbers, pointing to a shift towards higher-value insurance products.

 

Equity Bank recently reported a surge in its Bancassurance business with life insurance premiums doubling to UGX11.72 billion in the second quarter of 2026.

A closer scrutiny of the numbers shows that demand for education savings and investment-linked insurance products were the key drivers of that growth.

According to the reported numbers, life assurance premiums rose from UGX5.73 billion in the corresponding quarter of 2025, defying a 13pc dip in the number of life insurance policies from 75,000 to 65,000.

James Sserumaga, Equity Bank Uganda’s Head of Bancassurance, explains that the figures indicate a subtle qualitative shift. Customers are increasingly opting for higher-value policies tied to long-term financial planning than short-term needs.

Individual life insurance generated UGX8.97 billion of the total life assurance premiums, underscoring the growing role of personal savings and investment-oriented products in the bank’s insurance portfolio.

Sserumaga says that education-focused policies have become particularly popular among households seeking to plan for future tuition 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.

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.

The growth in premium income also translated into stronger earnings from life assurance. Commission income from life insurance increased from UGX630 million to UGX1.67 billion during the review period.

Meanwhile, claims settlements also increased significantly. Life insurance claims rose from UGX877 million in the second quarter of 2025 to UGX1.31 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 because 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.

Equity bank sees the next phase of its expansion increasingly leaning towards digital delivery and microinsurance solutions aimed at broadening access to insurance. The approach mirrors a wider trend across the industry as insurers seek to increase penetration and encourage long-term financial planning among households.