The insurance sector will continue struggling to attract clients unless concerted efforts are made to promote it among Rwandans.
Jean Pierre Majoro, the Rwanda Association of Insurers executive secretary, said it’s also up to the industry players to offer more products and services that appeal to customers.
Majoro added that the onus is on insurance companies to make the public understand the benefits of insurance, whether for life or property.
“It is also important for the firms to always explain to clients properly the policies they buy, especially what the policy covers, and also pay claims promptly,” he noted in an interview last week.
Majoro said some people do not want to buy insurance products because they have seen those who bought them go through hardships to get their compensation after disasters strike.
Those who pay for insurance premiums know that they would immediately be compensated in case the insured property is destroyed, but are always disappointed by insurers. Some insurers have even been sued for delaying payment of claims.
According to the National Bank of Rwanda, insurance penetration rate in the country will grow to 10 per cent by 2020, from about 3 per cent presently.
Insurance companies had a total net production of Rwf8.2b, up from Rwf7.6b in the same period.
Rwanda’s insurance penetration is still far below that of middle-income economies, where insurance accounts for 10 per cent of GDP. Rwanda has over 10 insurance companies, including public and military medical insurance institutions. There are about six brokers and close to 160 insurance agents.
Insurance sector in Rwanda continues to grow, but the question remains if the insurance firms respect insurance policies and schedules.