Private insurance companies recorded strong performance in the first quarter of 2026, with premiums increasing to Rwf75.4 billion, a 21.2 per cent rise compared to the same period last year.

This growth was announced by Soraya Hakuziyaremye, Governor of National Bank of Rwanda, on Thursday, May 21, as she presednted the country's financial sector performance and stability update.

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The increase, she said, reflects higher demand for insurance products and improved underwriting practices. Insurance products include life insurance, funeral insurance and health insurance.

There is also motor insurance, property insurance, agriculture insurance, liability insurance, marine insurance as well as guarantee insurance.

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Profitability in the sector also improved in the first quarter of 2026, with net profit rising to Rwf9 billion from Rwf7.5 billion over the same period last year, supported by stronger underwriting performance and investment income.

"The insurance sector recorded 10% percent growth,” Hakuziyaremye said.

Rwanda’s insurance sector assets surpassed Rwf1.3 trillion, with public sector institutions holding a 60 per cent market share.

She said private insurers’ operational efficiency strengthened, as reflected in the decline in the claims ratio to 60.5 per cent from 64.6 per cent, and the expense ratio to 31.3 per cent, down from 33.6 per cent.

This indicates that insurance companies have become more efficient in managing their operations, she said.

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However, there is still a challenge of unpaid premiums. Insurance companies are waiting for customers, mainly businesses, to pay Rwf37 billion in outstanding premiums.

This unpaid amount represents a 6.6 per cent increase in the first quarter of 2026, whereas in the same period in 2025 it had declined by 5.2 per cent.

The Financial Services Council (FSC) has recommended stronger measures to improve the collection of unpaid premiums. It urged insurers to issue cut-off notices for corporate clients who fail to pay on time. A cut-off notice means insurance cover may be suspended until payment is made.

National insurance strategy

Bernard Nsengiyumva, Executive Director for Financial Stability at BNR, pointed out that insurance uptake remains low.

He said that the national insurance framework is currently under review, with efforts underway to expand the range of available insurance products.

He further emphasised the need to introduce additional cover options, including fire insurance, which he described as an important gap in the current system.

He also stressed the need for insurance coverage in high-risk sectors such as mining and construction.

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In March, the central bank unveiled a new National Insurance Strategy, aimed at transforming the insurance sector by addressing long-standing challenges such as low insurance penetration, limited public awareness, and slow claims processing.

The strategy will guide reforms aimed at making insurance services more accessible, efficient, and trusted by the public, while also encouraging innovation and stronger participation from private sector players.

Currently, insurance penetration stands at 1.9 per cent of gross domestic product (GDP), a rate considered low compared to the sector’s potential.

The target is to increase insurance penetration to 5 per cent of GDP by 2035, and raising the proportion of the insured population from 27 per cent to 45 per cent.

Benefits of a growing insurance sector

There are various benefits of increased insurance premium collection to the economy.

Higher premiums mean the insurance industry becomes larger and more stable, which strengthens the overall financial system.

Insurance companies invest collected premiums in government bonds, infrastructure, and businesses. More premiums therefore mean more funds are available for national development projects.

With more people insured, the economy becomes more resilient to shocks such as accidents, natural disasters, or business losses.

A growing insurance sector can also expand operations, leading to more jobs in insurance companies and growth in related services such as brokers, agents, IT, and legal services.