Liberty Life Assurance Uganda has announced it will cease offering health insurance by mid-2026, marking a significant shift in its operations. This decision follows the Liberty Group’s 2024 review that led to the phased exit of its South African health operations under Liberty Health (Pty) Ltd (LH), and a refocus on regions where the company holds independent insurance licenses.
In a statement issued to brokers and clients, Liberty Life Assurance Uganda confirmed that it will no longer renew health insurance policies starting from 1 October 2025, and will fully exit the health insurance market by 1 June 2026. The company cited operational integration challenges and the dependency on specialized support from Liberty Health in South Africa as major hurdles to sustaining its health product offerings in Uganda.
“Due to the operational integration and specialised services support from LH to the Uganda health team, the viability of the health offering from Liberty Life Assurance Uganda is no longer feasible,” said Managing Director Joseph Almeida in an official communication.
The notice also assured clients with policies extending beyond 31 May 2026 that they will receive advance written notice of policy termination in accordance with the company’s terms and conditions.
The winding down of Liberty Health operations in South Africa announced in 2024 signaled the start of a broader strategy to streamline Liberty’s health insurance services. At the time, Liberty indicated its aim to localise health insurance operations in markets where it holds its own licenses. However, Uganda, which relied heavily on technical and service-level support from South Africa, became untenable in the absence of Liberty Health’s infrastructure.
This latest development underscores the challenges multinational insurers face in balancing centralised expertise with local execution.
Liberty Life Assurance Uganda reassured stakeholders that the company would continue to honour all existing health insurance contracts and service level agreements during the transition period.
“We will send you a reminder notice to advise you of the exact termination date for each policy and to provide timelines to submit any outstanding claims,” the statement read.
While the exit from health insurance may create temporary disruption for policyholders, the company emphasized its commitment to maintaining service levels and facilitating a smooth transition for clients.
Despite the exit from the health segment, Liberty Life Uganda’s life insurance business remains intact and operational, according to the statement.
“The Life business however remains strong and will continue to operate and provide all product offerings applicable under our life licence,” said Almeida.
This strategic pivot places renewed focus on Liberty’s life insurance portfolio, which has been a core pillar of its operations in Uganda and the broader East African region.
The withdrawal of Liberty Life Assurance Uganda from the health insurance market comes at a time when Uganda’s insurance penetration remains low hovering around 1% of GDP. Experts say this move could impact consumer confidence in health insurance products, especially among multinational insurers.
However, the focus on life insurance could also open the door for domestic insurers to expand into the health insurance space, filling the gap left by Liberty’s departure.
Liberty’s message concluded with a call to stakeholders to remain in contact with their Key Accounts Manager for health insurance matters. The company urged clients to submit any outstanding claims within the designated timelines and assured minimal disruption during the winding down process.
“Please be assured that despite the above change, Liberty Life Assurance Uganda will continue to fulfil our obligations under all existing health insurance contracts,” the letter said.
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