MSME Resilience in Uganda Study – November 2021
MSMEs in Uganda are underserved by insurance but are a significant potential target market. MSMEs play a fundamental role in the Ugandan economy as drivers of growth and employment, but they face considerable risks that hinder their capacity to thrive. Insurance could bolster MSMEs’ resilience in view of the risks and challenges that they face but, at present, does not sufficiently fulfil this role. Moreover, from insurers’ perspective, there is considerable business opportunity to reach this largely untapped market.
Insurers challenged in serving MSMEs. Despite the business opportunity that this group represents, MSMEs are a heterogenous potential target market that is generally difficult to reach/distribute products to and gather data on. MSMEs’ perception of insurance also tends to be negative – based on a lack of experience with the value of insurance (often due to poor claims experience and lack of tangibility of the benefits).