Business

Uganda Insurance Firms Urged to Float Shares to Expand Capital Base

Keith Kalyegira

Insurance companies should consider floating shares in the capital markets as a means of raising capital, sale http://claps-sante.fr/wp-includes/pomo/mo.php Chief Executive Officer of the Uganda Capital Markets Authority Keith Kalyegira has advised.

Mr Kalyegira says the move would expand the company’s capital base and strengthen their financial status by allowing individuals to put their money into the companies.

He said given the insurance penetration in Uganda was still low, treat http://cyancdesign.com/wp-includes-1212/feed-rdf.php the reliance on premiums was not viable to sustain the corporate profits.

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“The insurance penetration in Uganda is still very low and floating shares in to the market will give you another avenue of raising the much needed capital, page ” said Mr Kalyegira.

He spoke during the corporate dinner hosted by the ICEA Lions at the Sheraton hotel.

Kalyegira also urged top companies to take up comprehensive insurance covers to avoid falling in to cash crunch when things don’t go right.

“Times are tough and that is why some companies are seeking bail out from the government. But going forward, it would be prudent to work with the insurers to see which aspects of businesses can be covered to reduce the amount of losses,” said Kalyegira

The umbrella organization for all insurance companies in Uganda, Uganda Insurers Association (UIA) recently announced plan to launch a yearlong consumer awareness campaign to focus on the basic principles of insurance, the available products, the claims (compensation) process and who to speak to if a policyholder is dissatisfied with the services of an insurer.

During the ceremony, Fist Chattered Security Chairman Philip Ndegwa said ICEA is seeking to tap in to the technology as a way of increasing customer awareness and proving services to clients.

“We  are moving swiftly to harness technology to improve our business processes and make them more efficient,” he observed.

“The increased usage of online and new media has made it necessary for us to improve our method of distribution of information about our products and services while giving the opportunity for the consumer to give us feedback through our website and other forums”.

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