Challenges and Opportunities for the Establishment of a Local Reinsurance Company in Uganda

ABSTRACT Reinsurance is a subject which has to be given a high priority in order to safeguard the interest of all the clients who have been insured by various insurance companies. The topic is even more important in view of the amount of reinsurance premium paid to the foreign reinsurers. The topic of the study was to find out the challenges and opportunities for the establishment of a local reinsurance company in Uganda considering the fact that there was none. The problem therefore being lack of a local reinsurance company in Uganda which would have solved the problem being experienced. The objectives of the study was to establish why Uganda had not been able to establish a local reinsurance company and the possibility of having one, the current state of reinsurance business and reinsurance premium outflow from Uganda and finally on whether the establishment of one would improve the performance of insurance companies in Uganda. The study employed critical review of both primary data like questionnaires and personal interviews and secondary data based on the already published work and other related fields on the said subject of reinsurance. The major findings being the fact that there is no local reinsurance company in Uganda hence a lot of reinsurance outflow from Uganda despite the fact that opportunities are there to have one. Based on the findings, the recommendation is to have an established local reinsurance company in Uganda in view of the benefits to be accrued. The same X idea has been supported by various parties as per the findings in the report as per chart Nos. 2, 3 and 5 amongst others.