Efforts to expand insurance coverage will need to go beyond getting more people insured to providing insurance products with meaningful protection against financial losses. This was highlighted during the opening of the International Conference on Inclusive Insurance 2026 in Kigali on Tuesday, October 20, where speakers called for insurance products that are affordable, suited to customers’ needs and capable of helping households and businesses withstand unexpected losses. Soraya Hakuziyaremye, the Governor of the National Bank of Rwanda, said expanding insurance penetration was important but should not be treated as an end in itself. ALSO READ: Musanze fire exposes insurance gap among small businesses “High penetration is important, but it should be viewed as a means, not an end in itself. The broader objective should be to deliver appropriate protection at affordable prices through channels that people trust,” she said. Her remarks come as Rwanda seeks to increase insurance coverage under its National Insurance Strategy, with a target of reaching 45 per cent coverage by 2035. ALSO READ: New insurance scheme could save mine workers income in rainy season Personal insurance uptake increased from 17 per cent of adults, or about 1.2 million people, in 2020 to 27 per cent, or approximately 2.1 million, in 2024, according to the FinScope 2024 survey. Hakuziyaremye said the focus should be on insurance that provides practical protection, rather than treating higher penetration as the ultimate goal. “Our ultimate objective should be making this protection accessible and effective. The key question is how we deliver the right protection at an affordable price through channels that our citizens trust,” she said. “Innovation could help insurers reach underserved populations by lowering distribution costs and using digital technologies, data and established financial networks.” ALSO READ: Private insurers report 21% increase in premiums She pointed to partnerships with microfinance institutions and savings and credit providers as possible channels for reaching customers with products tailored to their needs and risks. Rwanda’s agricultural insurance programme, which receives a 40 per cent government subsidy, was another example she cited of how public policy and private sector participation can make insurance more accessible. The model highlights the role of government support in reducing the cost of coverage for farmers, while the wider challenge remains how to extend suitable insurance products to people whose incomes and exposure to risk vary. Andrew Kulayige, the chairperson of the Rwanda Insurers Association (ASSAR), said expanding insurance access is not enough unless products are affordable, reliable and suited to the needs of people and businesses most exposed to financial risks. “Our task is no longer simply to expand access to insurance, but to make insurance a better-value proposition, affordable and reliable for the people and the businesses that need protection most,” he said. Kulayige said the gap between economic losses and insured losses remained a major concern globally, particularly when natural disasters leave households, businesses and governments to absorb costs that insurance could otherwise help cover. He cited global economic losses from natural catastrophes of about $269 billion in 2023, of which only around 40 per cent was insured, leaving approximately $160 billion in losses uninsured. “The consequences of inadequate insurance could be severe for vulnerable households, forcing them to use savings, sell assets, borrow money or cut spending on essential needs such as education and business investment,” he said. “The National Insurance Strategy provides a roadmap for expanding affordable insurance, including agricultural coverage, and strengthening financial protection for farmers, rural households and other underserved groups,” he said. Kulayige added that the conference should be judged not only by the discussions held, but also by the action that follows. He urged participants to identify practical solutions, determine which partners were needed to implement them and consider how successful Renate Bleich, the Chair of the Munich Re Foundation, an organisation that supports the achievement of the UN Sustainable Development Goals in emerging and developing countries, said the insurance protection gap remained a major challenge for households facing economic shocks, particularly in low-income countries. “What happens when a harvest fails, a breadwinner falls ill or a flood destroys a small business. For many households, savings are exhausted, assets are sold, children leave school, and debts accumulate,” she said. “Such losses extend beyond the immediate financial burden on families, affecting their ability to maintain livelihoods, invest in businesses and meet essential needs.” Bleich said that when households lack insurance, they may have to absorb the full cost of unexpected events, leaving them more vulnerable to prolonged financial hardship. She said addressing the protection gap requires collective action to strengthen resilience and extend insurance to people who remain underserved. Laura Elena Rosado, the acting board chair of the Microinsurance Network, said expanding access to financial services did not automatically mean that people were adequately protected against financial risks. “Access to financial services and access to effective protection are not yet the same thing. Inclusive insurance could strengthen financial resilience only when products were accessible, appropriate, well understood and able to deliver real value when people needed them,” she said. “Closing the insurance protection gap requires collaboration across sectors and markets, as the risks facing households and businesses range from climate change and health emergencies to economic uncertainty.” She urged participants to turn discussions and shared knowledge into practical action, including improving insurance products, strengthening partnerships and influencing policy decisions. She said the value of the conference would ultimately depend on whether it led to changes in how the industry delivers protection.
