Old Mutual Investment Group Uganda has launched a new enhancement to its unit trust proposition, offering customers a free motor comprehensive insurance benefit at no extra cost for those maintaining a minimum balance in their investment accounts.
The launch, held at the company’s offices in Nakawa, adds to the recent integration of unit trusts with life insurance benefits, marking a further step in the firm’s strategy to combine wealth creation with asset protection.
Zac Kisesi, the Managing Director for Old Mutual Investment Group Uganda, said the enhancement reflects a shift in what customers expect from investment solutions.
“Today’s unit trust holders are looking for solutions that not only grow their wealth but also support other aspects of their financial needs. We are redefining what customers should expect from an investment solution by integrating investment with protection benefits. This is another step in our journey to make investing more relevant and accessible,” Kisesi said during the launch.
He explained that investing should be relevant to the everyday financial lives of Ugandans by being part of a broader financial journey. “A customer may be investing towards a home, education, retirement, a business or another long-term goal, while at the same time owning assets that are important to their daily lives and livelihoods. An unexpected financial event can very quickly disrupt those long-term plans if adequate protection is not in place. This is why we believe wealth creation and wealth protection must increasingly work together.”
Under the enhanced proposition, customers who maintain a minimum Unit Trust balance of shs100,000 will be eligible to access the Motor Comprehensive Insurance benefit, while continuing to enjoy the life-related benefits that form part of the enhanced unit trust proposition.
Andrew Makumbi, Managing Director of Old Mutual Insurance Uganda, said financial wellness is more than simply growing money, but also about protecting what one has worked hard to build. He noted that the new innovation will allow Old Mutual unit trust customers access an integrated and prompt motor comprehensive insurance, bringing investment and protection together in one customer-focused solution.
“For many Ugandans, a vehicle is an important asset. It may support a family, enable someone to earn an income or support a business. Protecting that asset is therefore an important part of protecting one’s overall financial wellbeing,” Makumbi said.
Figures from the Insurance Regulatory Authority of Uganda show that only about 15% of insured vehicles are covered under motor comprehensive insurance, leaving many motorists financially exposed to significant costs following accidents or other unforeseen events.
Bernard Obel, Director of Supervision at the Insurance Regulatory Authority of Uganda (IRA), welcomed the innovation, saying it will go a long way in driving insurance penetration in Uganda as well as expanding financial inclusion.
“The insurance industry continues to evolve, and innovation remains critical in addressing the changing needs of consumers. Solutions that combine protection with investment opportunities demonstrate the potential of the sector to expand financial inclusion, improve access to insurance, and support individuals and families in building long-term financial resilience,” Obel said.
Kisesi encouraged Ugandans to begin their unit trust investment journey with Old Mutual Investment Group from as little as shs100,000, emphasising that “what matters most is developing the discipline and habit of investing consistently towards clearly defined financial goals.”