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 has been unveiled. Launched by the Minister of Finance and Economic Planning Yussuf Murangwa during the Inclusive FinTech Forum 2026, the strategy seeks to strengthen the role of insurance in protecting households, supporting businesses, and enhancing the resilience of the national economy. Developed by the National Bank of Rwanda (BNR), 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. ALSO READ: New digital platform to connect startups to investors Currently, insurance penetration stands at 1.9 per cent of gross domestic product (GDP), a figure considered low compared to the sector’s potential, said Faith Batamuriza, the Director of Insurance and Pension Supervision at the Central Bank. “This means that a large portion of households and businesses remain financially exposed to unexpected shocks such as accidents, disasters, or loss of property. The strategy seeks to address these structural gaps while positioning insurance as a key pillar of financial protection and economic stability,” she said. One of the main barriers to insurance uptake has been limited public awareness and trust, according to officials. Many citizens are not fully familiar with how insurance works or the benefits it provides, which leads to hesitation when it comes to purchasing insurance products. ALSO READ: Insurers' body vows to address delays in paying private health facilities Delays in paying claims and lack of clarity in insurance contracts have also contributed to mistrust in the sector. Inside the strategy To tackle these challenges, the strategy is built around eight key pillars designed to modernise and expand the sector. The first pillar focuses on public awareness and insurance education, with initiatives aimed at strengthening financial literacy and building trust in insurance products. The second pillar emphasises digital transformation and the development of a stronger data ecosystem. Authorities plan to promote digital insurance platforms and data-sharing systems among insurers to improve efficiency and make services more accessible. “Digitalisation is expected to simplify policy management and speed up claims processing, addressing one of the major complaints among policyholders,” Batamuriza said. Another pillar targets universal coverage and financial inclusion, with efforts to expand insurance access to underserved populations including small businesses, women, and rural communities. ALSO READ: Private clinics rescind decision to cut ties with insurance firms The strategy also prioritises financial sustainability and risk pooling, strengthening insurers’ risk management capacity and capital resilience to ensure the sector remains stable and capable of covering large risks. Other pillars include customer-focused product development, encouraging insurers to design products tailored to different groups, recognising that the needs of urban residents may differ from those in rural areas. The strategy further emphasises governance and regulatory reforms, aimed at improving transparency, strengthening oversight, and reducing fraud within the industry. Additional pillars focus on integrating insurance with social protection systems, such as health coverage schemes, as well as strengthening climate and disaster risk resilience, given the country’s exposure to climate-related risks. Experts say improved awareness and stronger systems could encourage more people to insure homes, businesses, and other valuable assets, reducing vulnerability to financial shocks. The strategy outlines a series of targets intended to guide the sector’s growth over the next decade. Among the most significant goals is increasing insurance penetration from 1.9 per cent to 5 per cent of GDP by 2035. Authorities also aim to increase insurance density, the average spending on insurance per person, from Rwf25,000 to Rwf45,000, while expanding policyholder coverage from 27 per cent to 45 per cent of the adult population. To improve customer experience, the strategy sets a target of reducing the average claim settlement time to less than 30 days, largely through digitalisation and clearer policy structures. Beyond the insurance sector itself, policymakers say the strategy could generate wider economic benefits. For households, stronger insurance systems could provide financial protection against unexpected events, reducing the risk of falling into poverty after disasters or accidents. Businesses and entrepreneurs would benefit from better risk management and investment protection, helping ensure continuity when disruptions occur. “For governments, improved insurance coverage could reduce fiscal pressure during disasters and major shocks, as risks would increasingly be shared with insurers rather than being borne entirely by the state,” Batamuriza noted. She added that the strategy could also contribute to mobilising long-term savings and investment capital, strengthening the broader financial sector and supporting economic development.
