The Uganda Insurance Regulatory Authority has issued guidance telling insurers, brokers and reinsurance brokers to stop granting Long-Term Agreement discounts at policy inception. With immediate effect, any eligible discount must instead be applied only at the end of the agreed LTA period through a credit note that is offset against the premium due for the following policy year. The Authority said the change responds to LTAs being used as a marketing tool and to insureds continuing to switch insurers at annual renewal despite such agreements. The guidance cites the Insurance (Minimum Premium and Maximum Commission Rates) Regulations, 2023, under which LTAs in the fire insurance schedule must be approved by the Authority before any discount is applied and must run for at least three years and up to five years. All LTAs must be supported by duly executed agreements submitted to the Authority for review and approval before implementation. Firms are expected to align their underwriting and discounting practices accordingly, and non-compliance may attract regulatory action. The Authority said it will continue monitoring compliance.
Uganda Insurance Regulatory Authority2026-05-29
Uganda Insurance Regulatory Authority bars upfront long term agreement discounts and requires prior approval of three to five year contracts
The Uganda Insurance Regulatory Authority has directed insurers, brokers and reinsurance brokers to stop granting Long-Term Agreement discounts at policy inception and instead apply any eligible discount only at the end of the LTA period via a credit note against the following year’s premium. Grounded in the Insurance (Minimum Premium and Maximum Commission Rates) Regulations, 2023, the guidance requires LTAs to be supported by executed agreements submitted for prior approval and to run for three to five years, with non-compliance subject to regulatory action.