I&M Bank has partnered with Old Mutual Insurance to provide comprehensive insurance solutions to the clients of both leading institutions in their respective fields.
This is a move that will see the insurance penetration in Rwanda rise from the current 1.7%.
Currently, the insurance penetration of most African countries stands at 2% and this partnership will see a rise in the number of MSMEs covered by insurance in Rwanda.
This collaboration aims to provide Business Asset Insurance and Staff Medical Insurance, revolutionising the insurance landscape for MSMEs in Rwanda.
The partnership between I&M Bank and Old Mutual Insurance mainly comes offering two products; the Business Asset Insurance known as Icyashara Cover, a comprehensive insurance solution that offers protection against fire, floods, and other natural disasters, theft, accidental destruction of property, accidental death, body harm and injuries, public liability, loss or damage of money, all risk and business interruption.
Through providing insurance for their valuables, MSMEs can then put their minds and resources to running their businesses without any worries because all possible liabilities have been insured against.
The partnership between I&M Bank and Old Mutual will not only cover asset insurance but also provide Staff Medical Insurance known as Heza Care.
This will include a wide range of benefits such as inpatient, outpatient, maternity, dental, and optical insurance.
This will ensure that MSMEs recruit and get to keep skilled and qualified human capital who understand that their health and well-being is prioritided at their workplaces.
This revolutionary insurance offering brings to life a new approach to insurance, as previously, many insurance companies have not been so open to extending coverage to MSMEs due to the perceived unpredictable nature of their businesses.
The conventional practice of paying insurance premiums upfront has posed challenges, particularly for MSMEs. This practice has been a contributing factor to the relatively low insurance penetration in the market.
However, this transformative partnership has emerged to address this issue. It facilitates insurance premium financing at a discounted rate, easing the financial burden that upfront payments placed on these enterprises.
This innovative approach is poised to not only enhance the accessibility of insurance for MSMEs, but also contribute to the overall growth and resilience of these businesses.
Speaking at the launch of this partnership today, I&M Bank CEO Benjamin Mutimura expressed his enthusiasm at the partnership and said that I&M Bank appreciates the role played by MSMEs in running the country’s economy, and that the collaboration will break down barriers affecting their smooth operation.
"We are thrilled to join forces with Old Mutual to introduce these groundbreaking insurance solutions for MSMEs in Rwanda," he said.
"At I&M Bank, we recognise the immense potential and resilience of MSMEs as drivers of economic growth. Through this collaboration, we aim to break down barriers and enable MSMEs to thrive by providing them with access to comprehensive insurance coverage. By securing their assets and supporting their employees' well-being, we empower MSMEs to navigate challenges and seize opportunities confidently," he concluded.
Annie Nibishaka, CEO of Old Mutual, was also excited about the partnership with I&M Bank, and said that the partnership of two leading companies in their fields will provide a unique blend of security, development and prosperity for the institutions’ valued customers.
‘’We are delighted to unveil an unprecedented collaboration between Old Mutual Insurance Rwanda and I&M Bank Rwanda, where the realms of safeguarding and financial growth seamlessly unite. This strategic partnership marks a significant milestone, bringing together the expertise of two industry leaders to provide a unique blend of security and prosperity for our valued customers,’’ she said.
She went on to say, ‘’Through this partnership, we also aim to continuously deliver a finance education to the MSMEs, allowing them to fully understand their financial growth journey and the role of protection in achieving business sustainability.’’
Nibishaka also explained that this collaboration was tailor-made for the MSMEs because usually, they are small businesses which at times can have a maximum number of four people, and there have been some issues with such businesses getting insurance cover, but after the partnership, they are welcome to apply for insurance and they will be assisted.
‘’Businesses that have previously found it hard to receive insurance cover because they are MSMEs are welcome to approach any I&M Bank or Old Mutual branch and get assisted because this is what the collaboration is for,’’ she said.
She also mentioned that with this partnership, every MSME is now able to have insurance cover because they will fully be paid upfront for by the bank and they will be paying in agreed-upon instalments to the bank.