Liberty and Multilines move to domesticate Uganda cargo insurance premiums
Pan-African underwriter Liberty General Uganda and freight-forwarder Multilines International Limited, have launched a Marine Cargo product that will allow Ugandan shippers and traders, to purchase marine risk and transit cover locally.
The move is a direct response to regulatory requirements that came into force on July1, which require risk cover for all Uganda-bound freight to be insured by locally registered insurance companies.
While it protects Ugandan shippers from the risk of failing to recover claims against offshore insurers, it will also add depth to Uganda’s shallow financial sector by increasing the pool of patient money; all positive prospects for the cost of capital.
Speaking at the launch held at the Kampala Serena Hotel August 26, Liberty Uganda managing director Peter Makhanu, said “Marine and Cargo Insurance will help cover the costs associated with property damage and liability claims to importers. Without insurance, importers and business owners may have to pay out-of-pocket for costly damages and legal claims while trying to recover the loss”.
Multilines International Group Managing Director Gerald Mukyenga Said “the launch of this partnership marks a significant development where two players from different sectors forge a strategic alliance to attain synergy for mutual business advantage.
“We have been witness to many importers paying Insurance for air, land and sea using foreign insurers but ignoring the domestic insurance companies. This is therefore a step in the right direction for the insurance and logistics industry.”
A comprehensive and integrated insurance industry is seen as essential to boosting national savings and improving financial stability by reducing outflows.