The Uganda Insurance Regulatory Authority has issued a directive requiring all life insurance companies selling endowment assurance contracts (products with risk and savings components) to undertake a market-wide review and remediation of product design, operations and sales processes, including re-submitting all endowment policies for regulatory review. Life insurers must re-submit all endowment products for review and re-approval by 7 March 2025 and review any endowment products approved more than five years ago, submitting a report to the Authority. Key Facts Documents and policy documents must include a schedule of early termination (surrender) benefits by contract duration and a signed statement confirming the agent explained the policy in a language the policyholder understands. Firms must implement prompt physical and/or electronic policy delivery with mechanisms to confirm receipt; promptly process direct debit cancellation requests; and, for standing orders, inform policyholders to contact their banks to cancel upon policy cancellation. The directive also mandates inception calls before onboarding or within the cooling-off period, with content aligned to the Key Facts Document and evidence retained for onsite inspection, alongside ongoing direct communications on premium payments, direct debit failures and lapse notices. Insurers must maintain agent training programmes and records and enforce penalties for misleading sales practices, with blacklisting and substantial fines referenced for mis-selling. All actions must be implemented immediately and a compliance report submitted by 30 April 2025; failure to comply will attract penalties under the Insurance Act, Cap 191.

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