Africa

Losing out to offshore insurers

Although the use of offshore insurance capacity is illegal in Uganda, the local insurance industry nevertheless lost around UShs80bn (US$44.0mn) in premium income in 2004 as a result of local property and business risks being insured by foreign insurers. The managing director of AIG Uganda Insurance, Alex Wanjohi called on the government to enforce the law against the use of offshore insurance capacity. During a presentation on risk management to a womens entrepreneurs network organised by the Uganda Investment Authority, Mr Wanjohi warned that loss of income to local insurers is likely to be around UShs100bn in 2005. AIG Uganda is a subsidiary of the American International Group. AIG Uganda is the biggest company in the local non-life market. The company recently moved out of the Ugandan life market citing currency depreciation and the lack of reliable acturial data.