The central bank recently announced that penetration of the insurance industry will robustly increase to 10 percent by 2020, up from 2.3 percent in 2010.
This indicates that the insurance sector is likely to look up further with better market scenario in 2011 to emerge as one of the most profitable sectors in the country.
The sector has shown positive signs, growing significantly from Rwf31.8 billion in 2005 to Rwf119 billion in 2010 in terms of assets.
Insurance companies as well as the numbers of brokers and agents have increased impressively.
Rwanda has registered significant growth in both local and foreign investments even without a vibrant insurance industry.
These investments have partly boosted the economy to an average GDP growth rate of approximately 7.5 percent.
The recent reforms in the insurance industry will, therefore, propel the economy to higher growth rates by reducing uncertainties and the impact of losses incurred by investors.
Additionally, this will help attract new investments in other critical sectors of the economy including construction, energy, and telecommunications, among others, to help sustain the impressive economic growth of Rwanda.
A sound legal framework capable of ensuring that industry players are properly licensed and conduct their operations in a safe, sound and fair manner, will go a long way to ensure a dynamic and profitable insurance sector.