Uganda Investment Authority Women Entrepreneurs Network HOTEL AFRICANA

Uganda Investment Authority Women Entrepreneurs Network HOTEL AFRICANA, KAMPALA Thursday, March 16, 2006

Insurance & Risk Management

How do you CHOOSE your Insurer?

Criteria for an Insurer 1. Financial Strength 2. Management Quality 3. Claims Settlement Attitude 4. Reinsurance Only Then – Price/Premium

Risk Probability of Occurrence of an Event leading to: l. Loss or Disability of Life l. Loss of or Damage to Property

Risk Categories l Speculative Risk l Pure Risk

Speculative Risk Result = Loss or Profit Examples: • Buying Shares • Lending Money • Banking Money • Others

Pure Risk Result = Loss (Never Profit) Examples: • Fire • Motor Accident • Liability • Others

Risk Management l. Identify l. Control l. Transfer (Insurance)

Insurance § A FIXED & KNOWN COST (LOSS) IS INCURRED TODAY BY PAYING PREMIUM” § THE ADVERSE EFFECT OF A FUTURE PROBABLE (UNCERTAIN) LOSS IS MINIMISED

Insurance Industry • • • Uganda Government – Insurance Act 1992 Customers Insurance Companies Agents & Brokers Loss Adjusters, Investigators & Assessors

Uganda Insurance Market Size

INSURANCE FOR UGANDA BUSINESS WOMEN

Uganda Insurance Industry Troubled History • • Currency Depreciation Mistrust Misconception – Customers Vs Insurers Low Skills Inaccuracy of Values Negative Claims Settlement Attitude Insufficient Law – Overseas Insurance

MOTOR • Comprehensive • Third Party Liability

DWELLING HOUSE • Householders • House Owners • Personal Liability

FIRE • Fire • Explosion & Lightning • Earthquake incl. Tsunami • Flood • Malicious Damage • Strikes & Riots • Business Interruption

WORK ACCIDENTS • Workers Compensation • Employers Liability

ACCIDENT & HEALTH • • Individual Accident Group Accident Family Accident Children Accident Hospital Cash • MFI Protection

TRAVEL • • Leisure Travel Business Travel Family Travel Education Travel

TRANSPORT • Marine Cargo • Air Cargo • Inland Cargo • Transport Delay • Hull & Liability

CRIME • Burglary • Money / Cash-in-Transit • Employee Fraud • Computer Fraud • Bankers Blanket Bond • Arson

LIABILITY • Public Liability • Product Liability • Professional Liability • Management (Directors & Officers) • Pension Trustees Liability

ENGINEERING • Machinery Breakdown • Business Interruption • Electronic Breakdown • Data Reconstruction • Stock Deterioration

PROJECTS • Construction Risks • Machinery Assembly • Project Delay • Construction Plant

CRISIS • Terrorism • Sabotage • Kidnap & Ransom • Product Contamination

Thank You Partnership