The future of Ugandan insurance firms hangs on the balance unless the levels of fraud in the sector are dealt with effectively. Recent reports indicate that unskilled staff contributes to high rates of insurance fraud in the country.
Insurance fraud is a rising phenomenon in Uganda according to recent reports. The reports indicates that unskilled sector contribute to the fraud through various means. Insurance companies have been urged to be vigilant in their recruitment process because the unskilled staff will cost them money in the end. Training is a major aspect in the insurance sector and the insurance companies should invest heavily on upgrading their staff techniques and methods of handling different financial obligations and risks before awarding insurance to any company or individual. According to a recent report released by Ernst and Young the actuarial sector in the country requires immediate improvement through identification of modern techniques in handling situations.
According to Mr. Shah, the main challenge in Uganda is finding the right quality of staff in the country. This has contributed to the loss of various revenue generated through failed insurance policies offered to different individuals. The insurance firms in the country have to improve on staff training and improved technology to improve the delivery of specialized and sophisticated products in the country. He indicated that the traditional underwriters and actuaries have been on demand, however the skill supplied in these sectors has not been changing therefore presenting the firms with risks in undervaluing or giving wrong information.
Insurance products have improved over the years and more young people have begun embracing the products. The penetration of insurance products in Uganda stands at 0.85% and this is marking it difficult for firms to sell their products to potential clients. A study focused at ascertaining the powers of the growth of the insurance sector indicated that the companies face a greater risk in the event that the staff is not trained and their technology improved to cope with the changing business.