Bank of Kigali (BK) is the latest to enter the lucrative but crowded insurance field with the launch of BK general Insurance (BKGI).

It brings to 13 the number of private insurers on top of the two public insurers; Military Medical Insurance (MMI) and Rwanda Social Security Board (RSSB).

For a country the size of Rwanda and the percentage of the population that can afford insurance cover, 13 players could be deemed high. But in real business terms, it is a boon since competition plays in favour of customers.

In a bid to get a piece of the pie in such a small market, insurers have to come up with more attractive packages to remain competitive.

But that seems not to have played out. Premiums remain high and when it comes to paying claims, most insurers drag their feet.

Perhaps that is why the National Bank of Rwanda (BNR) has put its foot down and put a moratorium on new licenses. The industry has to put its house in order first.

The biggest casualty of that disorder has to be Sonarwa, the country’ oldest insurance firm. For decades it had monopolized the industry as the sole player.

But after a series of management issues (not to mention alleged shady dealings), RSSB, one of the major shareholders, stepped in to fish it out of the murky waters. It has announced intentions to take it over.

The insurance sector is a lucrative one and it is bound to attract some vultures, therefore BNR’s swift intervention should send a strong message, insurance is not a cash cow but a social protection instrument that itself needs to be protected.