Low penetration of life insurance in the Rwandan market is largely due to low levels of awareness on the need for insurance, Sonarwa Life’s Managing Director, Aurore Mimosa Munyangaju, has said.
Munyangaju was speaking at the launch of a two-day capacity building workshop of Insurance Agents and brokers who are expected to increase awareness on insurance to drive uptake and subscription.
The workshop, held in Kigali, brought together over 150 sales agents from across the country.
Munyangaju said that, currently, life insurance is largely undersubscribed largely due to lack of adequate awareness on how it works or its benefits.
A popular perception, she said, is that the insurance is for the rich.
“Getting life insurance is a necessity that can save one from unnecessary pressures when calamity strikes or at a later stage in life,” she said.
She also called on the youth to consider investing in life insurance services to safeguard their welfare.
“Most families rely on one person and in the event the breadwinner passes on or is unable to provide, there are significant challenges. With life insurance, the ones left behind are cushioned from such hardships by the proceeds,” she added.
She said that they have come to realise that among the reasons for the low penetration is largely due to low capacity among agents who often do not have adequate information to disseminate to clients in a bid to increase subscription.
“With trained staff we hope to reach out to potential clients across the country and boost our clientele,” she said.
Ngendo Alphonse, the firm’s head of marketing, said they hope to reach a target of at least 30 per cent of their total clientele subscribed to life insurance.
Regarding the misconception that life insurance is only for the rich, Ngenzi said that they have tailored multiple packages, including affordable ones enabling all social classes afford the service.
SONARWA Life is fully owned by Rwanda Social Security Board (RSSB) after the institution in 2017 increased its shareholding to 100 per cent.
Insurance penetration levels have remained relatively low in recent years and are yet to surpass the 4 per cent mark.
Despite an increase in the number of players on various levels over the previous years, little improvement has been felt.
Currently, the Rwandan insurance industry is composed of nine non-life insurers, four life insurers, two public medical insurers, 15 insurance brokers and 415 insurance agents.