The Insurance Regulatory Authority of Uganda has issued 2025 directives governing Deposit Administration Plans (DAPs) and Guaranteed Investment Funds (GIFs), establishing operational, governance and prudential standards for life insurers that undertake this business. The directives are intended to provide a regulatory framework for managing DAPs and GIFs pending the enactment of dedicated insurance regulations, and to support proper scheme management and consumer protection. The requirements apply to life insurers offering DAPs (where funds are invested with no guaranteed minimum interest) and GIFs (where a minimum interest and a fixed expense charge are guaranteed for the contract duration). Life insurers must appoint a custodian that is a financial institution licensed by the Bank of Uganda, alongside professional advisers including an external auditor, actuary and investment manager, with appointment and notification processes specified for conflicts, resignation and replacement. External auditors must be accredited by and approved by the Authority and hold professional indemnity insurance of at least UGX 100,000,000, and must confirm that GIF assets are segregated and identifiable. The directives also require establishment of segregated DAP and GIF funds and separate accounts, investment and solvency calculations in line with the Insurance (Capital Adequacy and Prudential Requirements) Regulations, and technical provisions including a bonus stabilization reserve; for GIFs, the guaranteed interest rate cannot be changed during the contract term, with revisions only contemplated at contract end subject to actuarial evaluation and notice to the Authority.

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