Uganda’s insurance sector has shown remarkable growth in recent years, with gross written premiums rising from Shs1.44 trillion in 2022 to Shs1.6 trillion in 2023, according to the 2023 Performance Report by the Insurance Regulatory Authority of Uganda. This reflects an annual growth of 11.29%. However, despite this positive trend, insurance penetration remains relatively low, with only about 4.5% of the population covered by any form of insurance as of 2022.
In response to this challenge, new and innovative products aimed at expanding access to insurance have been introduced, one of the most notable being Equi-Life—a microinsurance solution developed by Equity Bank Uganda in collaboration with Liberty Life Assurance and Turaco Microinsurance.
Equi-Life is designed to provide affordable and accessible insurance coverage to Ugandans, particularly those in low-income brackets. It offers two key protections: hospital cash benefits and end-of-life support. The policy provides financial relief during hospitalisation by paying out Shs50,000 per night of inpatient stay, beginning from the second night and up to a maximum of 20 nights annually, amounting to a total benefit of Shs1 million per year. This benefit is available to individuals aged between 18 and 75 years and applies to hospital admissions at Ministry of Health-accredited facilities across Uganda.
In the unfortunate event of death, Equi-Life offers an end-of-life cash benefit of Shs3 million, payable to the policyholder’s nominated next of kin. This benefit covers deaths resulting from natural causes, illness, or accidents and is also available to individuals between the ages of 18 and 75. To stay covered, policyholders make premium payments directly from their Equity Bank accounts through a standing order, with monthly contributions set at Shs3,000, quarterly at Shs9,000, and annual payments at Shs36,000.
Equi-Life coverage becomes active immediately after registration. Hospital cash claims can be made after 48 hours, while life benefits require a three-month waiting period, unless the event is caused by an accident, in which case the waiting period is waived. Claims are processed efficiently, with customers required to provide minimal but essential documentation. For hospital claims, a national ID and a stamped hospital discharge summary are needed. For life claims, documents such as a NIRA death certificate, medical or police reports (depending on cause of death), and identification for both the deceased and next of kin are required.
This product is the result of a strategic partnership. Equity Bank Uganda markets and distributes the policy through its branch and agency network, Equi-Duuka, manages premium collection, and supports customers with the claims process. Liberty Life Assurance Uganda underwrites the policy, manages risk, and supports continued marketing and customer engagement. Turaco Microinsurance, the tech partner, ensures seamless policy administration, provides customer support, and facilitates the swift processing and payout of claims within three working days.
Certain exclusions apply to the policy, including claims arising from political conflicts, criminal acts, substance abuse, self-inflicted harm, fraudulent activities, outpatient services, or treatment in non-accredited hospitals. These limitations are clearly communicated to policyholders to ensure transparency and protect the integrity of the product.
Equi-Life reflects Equity Bank’s broader commitment to increasing insurance penetration by embedding insurance within its financial services ecosystem. By leveraging its expansive branch network and established customer relationships, the bank is making insurance more accessible to underserved populations. The product is particularly aimed at supporting the financial stability of Uganda’s low-income earners—often referred to as “omuntu wa bulijjo”—with a focus on the 70% of the population that earns less than $2 a day.
Through Equi-Life, Equity Bank is not only advancing financial inclusion but also promoting a culture of preparedness and risk management. In a society where insurance is often misunderstood or undervalued, this initiative represents a significant step forward in redefining insurance as a practical and essential component of everyday financial planning.
