The government is exploring the establishment of a Disaster Insurance Fund to enhance quick recovery following catastrophic events. A Disaster Insurance Fund is a financial mechanism designed to provide swift access to funds for disaster recovery and response. It covers a range of calamities, including earthquakes, floods, and wildfires, ensuring that resources are pre-allocated for immediate relief and long-term rebuilding efforts. The initiative aims to reduce the economic burden on affected communities and enhance resilience. ALSO READ: Report shows effects of 10 major disasters in 2024 The Rwandan government incurs annual losses ranging between $200 million (approximately Rwf283.75 billion) and $300 million (approximately Rwf426 billion) due to disasters. “The insurance fund is being discussed with insurance companies and other stakeholders to explore how it can be established and integrated with existing programs such as crop, livestock, and wildfire insurance. This initiative will help the government better support citizens impacted by disasters,” said Albert Murasira, Minister in charge of Emergency Management (MINEMA), in an interview with The New Times. Similar to conventional insurance, governments, businesses, and individuals would contribute premiums to the fund. Learning from other countries Murasira highlighted that countries with such schemes provide coverage for properties, including homes, businesses, and merchandise damaged by disasters. ALSO READ: Rwanda identifies 326 disaster hotspots amid regional flood crisis “What makes this fund unique is its all-disaster risk coverage, ensuring protection against various types of disasters,” he noted. He added, “We are still in the early stages, working closely with experts to define its structure and operations. While final details are yet to be determined, our goal is to reduce the government’s financial burden in covering disaster-related losses.” Jean Baptiste Nsengiyumva, a researcher in disaster risk management, views the proposed fund as a transformative solution to persistent challenges in disaster response and recovery. ALSO READ: Deaf rights activists call for inclusive disaster preparedness during natural crises “Disasters often leave victims unable to recover independently, and government or partner support is frequently delayed due to financial constraints. This fund would provide immediate relief, enabling quicker rebuilding without reliance on emergency appeals,” he said. Nsengiyumva emphasised that financial instability is a significant obstacle in disaster recovery, affecting both individuals and the government. “Currently, disaster response competes with other national priorities, causing delays in aid distribution. A dedicated fund would ensure readily available assistance when needed,” he noted. Slow access to funds often prolongs disaster impacts “For instance, when schools are destroyed, students lose valuable learning time waiting for repairs. Likewise, damaged roads disrupt transport and economic activities. Rapid funding would minimize these disruptions,” he explained. He described the fund as a proactive measure to reduce dependence on unpredictable donor support. “Instead of last-minute resource mobilisation, the government would have a structured mechanism for immediate response and recovery,” he said. The fund would also promote a more strategic approach to disaster preparedness. “Rwanda previously maintained emergency stockpiles, but sustaining them was challenging due to the varying nature of disasters. A financial reserve allows flexibility in responding to diverse crises,” Nsengiyumva added. For effectiveness, he suggested that clear guidelines be set, categorizing disasters by severity to determine support levels. Additionally, he stressed the importance of public awareness to prevent over-reliance on aid. “People should be encouraged to take preventive measures and contribute where possible. The fund should prioritise those in genuine need rather than replacing individual responsibility,” he said. While the fund may not resolve all disaster-related challenges, Nsengiyumva believes it will mark significant progress. “It will ensure quicker response times, lessen the financial burden on victims, and create a more efficient recovery system,” he concluded. Industry support for the initiative Solange Muteteri, Claims Director at Radiant Insurance Company, described the initiative as a much-needed safety net. “Disasters strike without warning, and structured financial support will reassure people that help is available when they need it most,” she said. She noted that disaster victims have traditionally relied on local authorities and community support, which often takes time to mobilize. “A dedicated fund guarantees timely and consistent aid,” she emphasised, adding that it will provide clarity on how and where affected individuals can access support.
