Trend analysis of premiums received under life assurance policies in Uganda (2000-2020)

Abstract

This study focused on the trend analysis of premiums received under life assurance policies in Uganda (2000-2020). The study specifically aimed at determining whether there is trend in life insurance premiums received in the insurance industry of Uganda, determining the impact of GDP growth rate and population growth rate on Life insurance premiums and determining the impact COVID-19 pandemic on the life insurance industry. The study employed the Multivariate Linear Regression Model and the findings reveal a statistically significant and positive relationship (coefficient =2.85 *108, p-value=0.001<0.05) between Life Insurance Premiums and Population growth rate at five percent level of significance. This implies that a percentage increase in population growth rate increases Life Insurance Premiums by approximately UGX 28.5 Billion at 5% level of significance. The study used a bar graph to determine the trend in life insurance premiums and the plot shows an upward trend in the life insurance premiums. The study concluded that; COVID-19 pandemic adversely affected the life insurance industry by increasing the life insurance loss ratio and Net Claims Incurred, positively affected the life insurance industry by increasing the life insurance premiums & Total Assets, and Changes in Population growth rate are associated with changes in life insurance premiums. The study recommended that the government of Uganda through IRA should sensitize the life insurance companies about the new opportunities because of the corona virus out-break and how they should use them to increase their profitability