Insurance uptake in Rwanda remains at around 2 per cent despite the multiple players in the local market and multiple campaigns to drive uptake. Of the section of the population that has insurance, a significant section is subscribed for compliance to regulatory requirements such as motor vehicle insurance and general insurance coverage for properties under mortgages. It is however understandable that many stay away from the sector’s services given unending uncertainties, unpredictable changes and shifts in service delivery. The recent public drama between three insurers and private clinics is one of many incidents to play out in the sector that could have eroded the confidence of the public in related services. A few years ago, insurance companies had suddenly increased motor vehicle premiums by up to 73 per cent, a move that was explained as correcting price undercutting. In 2021, the prices of general insurance went up, a move approved by the Association of Insurers’ Rwanda (ASSAR) in October 2020, and was binding to all operators in the general insurance business. As a consequence, insurance prices for non-motor and non-health coverage across the market went up as clients with no prior communication to clients. The sector has also been known to be selected with regard to certain risks which have seen motorbike taxi operators less attractive to coverage. In the local market, there have also been practices such as price wars leading to liquidity challenges and inability to pay claims. Insurance claims have also gone unpaid for years with some ending in court battles. Such unending challenges and incidents continue to erode any confidence members of the public might have had in the sector’s services and see further hesitance for uptake across the market. While sector players and the regulator have often blamed low awareness on the low levels of penetration, it’s probably time to start considering that their reputation could have been tainted by frequent incidents. Correcting this would be an ideal starting point in the ambitions to improve sector performance.
