Demand for education savings and investment-linked insurance products has helped Equity Bank Uganda more than double its life insurance premiums to Shs11.72 billion in the second quarter of 2026, despite a decline in the number of active policies.
The bank’s life assurance premiums increased from Shs5.73 billion in the second quarter of 2025 to Shs11.72 billion in the same period this year, representing growth of more than 100%.
However, the number of life insurance policies declined from 75,000 to 65,000 over the same period, suggesting that the bank earned more premiums from a smaller number of policies.
James Sserumaga, Equity Bank Uganda’s Head of Bancassurance, attributed the growth to increasing demand for higher-value insurance products, particularly those designed to help families save and invest for long-term financial needs.
He said more customers were embracing insurance products that combine financial protection with savings, enabling them to prepare for major future expenses such as school fees.
Individual life insurance contributed Shs8.97 billion to the total premiums collected during the quarter, highlighting its importance to the bank’s life assurance business.
Education-focused insurance products have become particularly attractive to parents and guardians seeking to secure their children’s education while building savings over several years.
These products allow customers to make regular contributions over a minimum period of five years. In addition to providing insurance protection, they help policyholders accumulate money that can be used to meet future financial obligations.
Unlike ordinary savings arrangements, insurance-linked savings products combine a savings component with protection benefits, although the specific benefits depend on the terms of each policy.
The growing interest in such products reflects efforts by households to adopt more disciplined saving habits and prepare for future financial responsibilities.
The bank also reported an improvement in policy persistency, which measures the extent to which customers continue paying premiums and maintain their insurance cover instead of allowing policies to lapse.
Sserumaga attributed the improvement to regular customer engagement and follow-up activities aimed at encouraging policyholders to keep up with their payments.
The increase in life assurance premiums also boosted the bank’s commission income from the business. Commission earnings rose from Shs630 million in the second quarter of 2025 to Shs1.67 billion in the corresponding quarter of 2026.
However, the bank also recorded an increase in claims paid to policyholders and beneficiaries. Life insurance claims rose from Shs877 million to Shs1.31 billion over the same period.
Claims payments are an important part of insurance business because they provide financial support to policyholders and their beneficiaries when insured events occur. The increase in claims payments also reflects the bank’s growing life assurance business, although the figures alone do not establish the reasons behind the increase.
Looking ahead, Equity Bank Uganda plans to use digital platforms and microinsurance products to expand access to insurance, particularly among low-income earners and customers who have traditionally struggled to obtain affordable cover.
Digital distribution is expected to make it easier for customers to access insurance products through electronic channels, while microinsurance will provide more affordable options for people who may not be able to meet the cost of conventional insurance policies.
