The challenges in Rwanda’s insurance sector
Independent Uganda, 6 March 2012
As a means to increase Rwanda’s insurance penetration, players in the sector continue to push the government to introduce more compulsory insurance products and waive Value Added Tax (VAT) on insurance premiums. The sector faces a demanding task of achieving penetration of 10% by 2020 from the current level of 2.3%.
Rwanda’s economic development, largely dependent on a population that lacks capacity to buy insurance, is a serious impediment to the growth of the insurance sector.
According to the latest Integrated Household Living Conditions Survey (EICV), Rwandans living in poverty has been reduced but the figure is still high at over 45%. The majority of Rwanda’s 10.7 million population are involved in small-scale agricultural activities which, to date, cannot attract insurance because few can afford it. Livestock insurance has begun but is moving at a slow pace because of the costs associated with it. This consequently discourages companies to offer the product.
Read more about the Rwandan insurance sector
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