According to FinScope Uganda (2018) just 1.4% of adults have insurance. Despite 61% of adults indicating that they had faced an insurable risk within the preceding 12 months, no respondents indicated using insurance as a coping mechanism.
However, a growing economy and increasing incomes suggest that the potential of insurance is far greater.
FinScope further indicates that many Ugandans are employing welfare-reducing coping mechanisms, like selling assets and cutting down expenses, to deal with the risks faced. The implication is that there would seem to be both a need and a viable business case to substantively improve the use of insurance in Uganda.
In response, FSD Uganda have launched the Microinsurance Challenge Fund (MCF), aimed at increasing the availability and usage of appropriate insurance solutions to the underserved in Uganda. The MCF is a response to nudge the market towards more innovative solutions to address the mismatch between the demand and supply of inclusive insurance services.
Cenfri, through its FSDA funded RRI programme, have partnered with FSD Uganda to provide technical support and guidance on the design and delivery of the challenge fund.
A detailed RFP and application form is available for download from FSD Uganda’s website, available here. Applications close 5 February 2019.
The MCF was formally kicked off with an industry workshop hosted at the Protea Hotel, Kampala. Emerging opportunities for the industry were presented by the Cenfri team, based on detailed FinScope analysis and selected stakeholder interviews. The presentation is available for download below.