The majority of the people in Uganda are peasants and therefore poor. They do not have property worth insurable
Many people are not well sensitized or enlightened about Insurance. They are ignorant and are not willing to undertake insurance. They think insurance is wastage of money
Loss of trust among people in insurance business. Some Insurance Companies are reluctant to compensate the insured and others take long to settle the insured claim
Inflation has affected the insurance business because of increasing prices of goods and services. Inflation therefore increases the operational expenses of the insurance company and hence lowers the profits
Insurance companies are not widely spread throughout the country. They are only found in urban centers
Many businesses in Uganda operate on small scale and hence there is no need for insurance for example a hawker of ground nuts
Many insurance companies are still small and have limited capital expansion There is excessive competition among the insurance companies such that some companies do not have clients and cannot make profits
Insurance companies are charged with high taxes by the government Political instability may affect the insurance industry
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