Absa Bank Uganda has joined forces with UAP Old Mutual to introduce the Absa medical insurance policy, specifically designed for self-employed and non-salaried individuals, with the aim of improving access to health insurance in Uganda.
The comprehensive policy provides coverage for critical illness, inpatient care, optical and dental services, maternity care, disability cover, funeral expenses, a wellness program, and international cover for travel outside East Africa, among other benefits.
According to the World Bank’s Uganda Human Capital Index for 2020, 15% of Uganda’s population faces catastrophic health expenditure, wherein out-of-pocket spending exceeds 10% of household consumption or income.
Mumba Kalifungwa, Managing Director of Absa Bank Uganda, emphasized that the launch of this product is part of their efforts to increase insurance penetration in the country. Currently, a significant portion of the population relies on cash payments, savings, property sales, or crowdfunding to cover unforeseen health emergencies. The new insurance offering aims to make insurance more accessible and affordable, thereby improving the quality of life for more people in Uganda.
“As a pan-African bank, Absa Bank Uganda is driven by a deep desire to see Uganda and Africa reach their full potential, and we are playing our part by ensuring that everything we do is underpinned by our refreshed purpose, which is to empower Africa’s tomorrow, together, one story at a time,” added Kakifungwa.
The partnership between insurance companies and banks under the bancassurance model has proven effective in increasing insurance adoption in Uganda. Insurance Regulatory Authority’s quarterly reports indicate that bancassurance contributed 9.90% to the insurance industry by the first quarter of 2023, with Gross Written Premiums amounting to approximately shs41.7 billion. This marks a 22% increase from the total contribution in the first quarter of 2022, highlighting the growing impact of bancassurance in expanding insurance accessibility.
Stephen Chikovore, the Managing Director of UAP Old Mutual, stressed the need for collective efforts from various stakeholders in both the public and private sectors to address the significant gap in access to emergency healthcare in Uganda. He expressed gratitude for partners like Absa Bank Uganda, who actively encourage innovation and contribute to creating insurance products and policies that positively impact the lives of more Ugandans.
During the launch event in Kampala, Dr. Paul Kasenene, a nutritionist, and lifestyle and functional medicine practitioner, urged the public to adopt healthy lifestyles and prioritize wellness to reduce the risk of health complications.
With the introduction of the Absa medical insurance policy, Absa Bank Uganda and UAP Old Mutual aim to bring accessible and quality healthcare coverage to self-employed and non-salaried individuals, contributing to the overall improvement of Uganda’s healthcare landscape.
