The American International Group (AIG), an insurance trading company has announced its withdraw from the Ugandan insurance market.
According to a statement released by the Group’s officials, AIG has already started on a phased withdraw process to close shop in Uganda.
“AIG is creating a simplified organisation that positions us to achieve our global strategy based on capabilities and market opportunities. After careful consideration and an in-depth review, AIG will stop offering insurance products in the general market in Uganda,” the statement reads in part.
This comes in the wake of Uchumi supermarket’s exit from Ugandan market due to a struggling economy. Nakumatt is equally on the edge as household incomes dwindle.
AIG has been operating in Uganda since 1962, offering insurance products but has failed to adapt its business model to competition, probably one of the reasons that forcing its exit.
The group has however clarified that the existing clients will continue to receive full policy administration and claims support for the remaining period of their policies.
“We will remind our clients of this change at the expiration of their policy,” the statement further reads.
“We will ensure smooth transition through this change and we are working with our stakeholders to avoid any customer or market disruption.”