“Strong numbers build strong insurers.” It is a simple statement, but one that has never been more relevant than it is today.
Uganda’s insurance sector is operating in an environment of rising expectations. Regulators are asking tougher questions, policyholders are demanding greater transparency, and investors and reinsurers want reassurance that insurers are built to last. In response, financial governance has moved from the background of insurance operations to centre stage.
The Insurance Regulatory Authority has taken notable steps to strengthen oversight, particularly through improved reporting standards, risk-based supervision, and heightened corporate governance requirements. At the same time, the Uganda Revenue Authority has sharpened its focus on tax compliance, with the introduction of EFRIS and stricter enforcement of VAT obligations significantly changing how insurers manage revenue and documentation.
For insurance companies, these shifts are not merely regulatory events. They represent a structural change in how the business must be run. At the heart of this transformation sits the Chief Financial Officer. Once viewed primarily as a steward of financial records, the modern CFO has become a strategic partner to management, a governance champion, and the primary bridge between insurers and regulators.
Financial reporting, for instance, has evolved beyond meeting minimum statutory requirements. While compliance with IFRS, the Insurance Act, and IRA guidelines remains essential, stakeholders today expect financial statements that tell a clear and credible story. They want to understand how underwriting performance differs from investment returns, how insurance liabilities move over time, and how results compare meaningfully from one year to the next.
When financial statements are well structured and easy to navigate, confidence naturally follows. Regulators gain comfort in the insurer’s control environment, reinsurers are reassured about risk management discipline, and investors can better assess sustainability. In this sense, the quality of financial reporting has become a visible indicator of an institution’s governance culture.
This demand for clarity has been amplified by the introduction of IFRS 17, the most significant accounting change the insurance industry has experienced in decades. Implementing the standard has required insurers to rethink systems, actuarial models, and internal processes. Concepts such as fulfilment cash flows, risk adjustment, and the contractual service margin now shape how performance is measured and communicated.
Successfully navigating this complexity requires close collaboration across actuarial, underwriting, and finance functions. Assumptions must be consistent, clearly documented, and regularly reviewed. Where governance is weak, the risk of misstatement rises. Where it is strong, financial results become more reliable and decision-useful.
Alongside IFRS 17, IFRS 9 has introduced new disciplines around investment accounting and credit risk. Expected credit loss models now demand a more forward-looking assessment of receivables and debt instruments. Delayed premium remittances, disputed balances, and government-related insurance schemes must be evaluated carefully to avoid overstating income or understating risk. Professional judgment, properly governed, plays a critical role in preserving the credibility of financial statements.
Tax compliance has emerged as another defining pressure point. With EFRIS now fully operational, URA has unprecedented visibility into insurance transactions. This has placed greater emphasis on accurate invoicing, correct VAT treatment, and proper alignment between premiums invoiced and cash collected. Errors in structure or timing are no longer minor administrative issues. They carry real financial and reputational consequences.
For insurers, the lesson is clear. Tax governance cannot sit in isolation within finance departments. It must be embedded into underwriting and operational processes, supported by early engagement with tax authorities and professional advisors. Proactivity, rather than reaction, has become the safer and more sustainable approach.
As regulatory scrutiny intensifies, segment reporting has also taken on new significance. What was once viewed as a disclosure requirement now serves as a powerful management lens. By analysing performance across general insurance, life insurance, and holding company operations, boards and executives gain deeper insight into profitability, cost efficiency, risk concentration, and capital utilisation. These insights increasingly inform strategic decisions on pricing, expansion, and capital allocation.
Yet, for all the technical complexity of reporting and compliance, the core of insurance remains unchanged. Insurance is a promise-based business. The ultimate measure of an insurer’s credibility is its ability to honour claims promptly and consistently.
This places liquidity and solvency management firmly at the centre of financial governance. Maintaining adequate capital buffers, monitoring reinsurance recoverability, stress-testing adverse claims scenarios, and forecasting cash flows are no longer back-office exercises. They are fundamental to protecting policyholders, strengthening reinsurer confidence, and maintaining regulatory trust. Insurers that manage liquidity proactively are far better positioned to withstand market shocks and economic uncertainty.
Audit readiness further reinforces this governance framework. Institutions that treat audit preparation as a continuous discipline, through regular reconciliations, updated schedules, and documented judgments, experience smoother audits, fewer surprises, and stronger credibility with boards and regulators. More importantly, this discipline strengthens overall risk management and organisational resilience.
Taken together, these developments have redefined what it means to be a CFO in Uganda’s insurance sector. Today’s finance leader must balance technical excellence with strategic insight, regulatory engagement with commercial awareness, and compliance with value creation. The role now extends well beyond reporting historical numbers. It is about shaping informed decisions and sustainable growth.
Uganda’s insurance industry stands at an important crossroads. Those institutions that embed strong financial discipline, transparent reporting, proactive regulatory engagement, and sound capital management will be best positioned to earn trust and grow responsibly. As finance leaders, our responsibility is not only to account for the past, but to help build resilient futures for our institutions and for the industry as a whole.
Strong numbers, indeed, build strong insurers.
