Frank Tumwebaze, Uganda’s Minister for AgricultureUganda’s insurance sector has come under sharp criticism from the Minister of Agriculture, Animal Industry, and Fisheries, Frank Tumwebaze, over alleged persistent failure to honor claims by farmers and other clients despite mandatory insurance requirements in several sectors.In a strongly worded message to colleagues at the Insurance Regulatory Authority (IRA), Tumwebaze warned that farmers “have a serious quarrel” with insurance companies, which he said are increasingly perceived as deceptive. “Insurance is proving to be a scam, sorry to say,” he said, adding that while laws make insurance cover mandatory in sectors like banking—particularly for borrowers of agricultural loans under the Agricultural Credit Facility (ACF)—and broadcasting, policyholders struggle to get compensation.He cited cases where farmers who import high‑pedigree animals using ACF loans “rarely get compensated by insurance companies when their insured animals die,” and radio broadcasters face similar frustrations when disasters damage insured equipment.“I used to get complaints from radio broadcasters when I was Minister of ICT. I am now getting the same complaints from farmers as I am at the Ministry of Agriculture,” Tumwebaze noted.The minister challenged the IRA to urgently engage with stakeholders and rein in malpractices in the industry, warning that the government may be forced to reconsider compulsory insurance if the situation does not improve.“We must address this issue or we stop making insurance a mandatory condition/prerequisite for loans and other services,” he said. Describing current practices as “unfair and unacceptable,” Tumwebaze condemned insurance firms for “hiding behind frivolous technicalities to deny compensation to their clients who have paid hefty premiums,” and urged regulators to ensure policyholders receive the protection they are promised.Many Ugandans agreed with the Minister, saying the insurance industry is viewed as a scam.For example, a one Samson said: “Even major hospitals have started distancing themselves from insurance companies, you go to the hospital with your insurance card and they don’t want to even lay an eye on you!We thought insurance would be coming through for our aged parents, we made those monthly, yearly contributions with reason that they would help us in such years of our aging parents but now hospitals don’t want to see insurance patients. Government should simply come out and force these insurance companies to compensate people or encourage people to run away from insurance companies because it’s boiling uncovered!”Responding to Tuwmebaze’s tweet, Dr. Protazio Sande, the Acting Chief Executive Officer of IRA, said: “The issues you raise are very pertinent and I agree, a serious conversation is both necessary and urgent. As IRA, we are ready to convene the stakeholders in the insurance space and we get to the bottom of the concerns you are raising.”Uganda’s insurance industry surpassed the two trillion-shilling mark in gross written premiums (GWP) for the first time, collecting 2.024 trillion shillings from policyholders in 2025.According to the Insurance Regulatory Authority (IRA), this represents a record growth of 14.72 percent from the 1.764 trillion Shillings recorded in 2024. The post Minister Tumwebaze Blasts Mandatory Insurance: “It’s a Scam” appeared first on Business Focus.