Stanbic Bank Uganda and Prudential Assurance Uganda Limited have relaunched their Medi-Protect health insurance product, more than doubling coverage limits, broadening medical benefits, and introducing a low-cost inpatient-only option that embraces consumers that find it expensive to take out insurance.

The upgrade targets one of Uganda’s most stubborn financial vulnerabilities. Of a population exceeding 48 million, only about 500,000 people currently hold medical insurance, leaving the vast majority exposed to unplanned hospital bills that frequently devastate household finances.

Israel Arinaitwe, Stanbic Bank’s Head of Personal Banking, said the enhanced package was designed to extend healthcare protection beyond the corporate employees who dominate existing insurance rolls.

“Less than five per cent of Ugandans have health insurance,” Arinaitwe said at the launch recently.

“What is more concerning is that many of those covered are beneficiaries of corporate insurance. But what happens to my mother? What happens to my children? It is important that the Ugandan population begins to think about them – and that is the role of Medi-Protect.”

He cited World Health Organization figures showing that 38 per cent of Uganda’s total healthcare expenditure is paid directly out of pocket, leaving families dependent on personal savings whenever illness strikes.

The relaunched product offers three categories of cover: Individual Cover, Family Shared Cover, and a newly introduced Inpatient-Only option. Dogo Singh, Stanbic Bank’s Manager for Bancassurance, said the changes were driven by customer feedback and market research.

Benefits under the entry-level Silver Plus package have been raised to Shs 58 million from Shs 18.5 million, while the top-tier Platinum Plus package now provides combined inpatient and outpatient coverage of up to Shs 294 million.

All enhanced plans include critical illness support, life cover, total permanent disability protection, school fees assistance for up to four children, and funeral benefits. The new Family Shared Cover allows multiple household members to access benefits under a single policy, with premiums decreasing as more dependants are added.

The inpatient-only plan, starting at Shs 350,000 annually, provides hospitalisation cover of up to Shs 29 million alongside life, disability, and critical illness protection – a price the partners say opens the market to lower-income earners for the first time.

Paul Nagemi, Prudential Uganda’s Chief Health Officer, said the partnership’s aim goes beyond simply selling policies.

“Not just access, but affordable and quality health insurance,” Nagemi said, adding that serious medical emergencies routinely disrupt household incomes, children’s education, and long-term financial plans – making the link between healthcare and financial resilience a central part of the product’s design.

Uganda’s health insurance penetration remains among the lowest in East Africa, with coverage concentrated in Kampala and limited almost entirely to formally employed workers on employer-sponsored schemes.

Industry analysts say bancassurance partnerships, where banks distribute insurance products through their existing retail networks, have emerged as one of the more promising routes to closing that gap.

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