Personal insurance coverage firms recorded robust efficiency within the first quarter of 2026, with premiums growing to Rwf75.4 billion, a 21.2 per cent rise in comparison with the identical interval final yr.
This development was introduced by Soraya Hakuziyaremye, Governor of Nationwide Financial institution of Rwanda, on Thursday, Might 21, as she presednted the nation's monetary sector efficiency and stability replace.
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The rise, she mentioned, displays increased demand for insurance coverage merchandise and improved underwriting practices. Insurance coverage merchandise embody life insurance coverage, funeral insurance coverage and medical insurance.
There may be additionally motor insurance coverage, property insurance coverage, agriculture insurance coverage, legal responsibility insurance coverage, marine insurance coverage in addition to assure insurance coverage.
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Profitability within the sector additionally improved within the first quarter of 2026, with internet revenue rising to Rwf9 billion from Rwf7.5 billion over the identical interval final yr, supported by stronger underwriting efficiency and funding revenue.
“The insurance coverage sector recorded 10% % development,” Hakuziyaremye mentioned.
Rwanda’s insurance coverage sector belongings surpassed Rwf1.3 trillion, with public sector establishments holding a 60 per cent market share.
She mentioned personal insurers’ operational effectivity strengthened, as mirrored within the decline within the claims ratio to 60.5 per cent from 64.6 per cent, and the expense ratio to 31.3 per cent, down from 33.6 per cent.
This means that insurance coverage firms have develop into extra environment friendly in managing their operations, she mentioned.
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Nonetheless, there may be nonetheless a problem of unpaid premiums. Insurance coverage firms are ready for patrons, primarily companies, to pay Rwf37 billion in excellent premiums.
This unpaid quantity represents a 6.6 per cent enhance within the first quarter of 2026, whereas in the identical interval in 2025 it had declined by 5.2 per cent.
The Monetary Providers Council (FSC) has advisable stronger measures to enhance the gathering of unpaid premiums. It urged insurers to problem cut-off notices for company shoppers who fail to pay on time. A cut-off discover means insurance coverage cowl could also be suspended till fee is made.
Nationwide insurance coverage technique
Bernard Nsengiyumva, Government Director for Monetary Stability at BNR, identified that insurance coverage uptake stays low.
He mentioned that the nationwide insurance coverage framework is presently beneath assessment, with efforts underway to develop the vary of obtainable insurance coverage merchandise.
He additional emphasised the necessity to introduce extra cowl choices, together with fireplace insurance coverage, which he described as an necessary hole within the present system.
He additionally pressured the necessity for insurance coverage protection in high-risk sectors equivalent to mining and building.
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In March, the central financial institution unveiled a brand new Nationwide Insurance coverage Technique, geared toward remodeling the insurance coverage sector by addressing long-standing challenges equivalent to low insurance coverage penetration, restricted public consciousness, and sluggish claims processing.
The technique will information reforms geared toward making insurance coverage providers extra accessible, environment friendly, and trusted by the general public, whereas additionally encouraging innovation and stronger participation from personal sector gamers.
Presently, insurance coverage penetration stands at 1.9 per cent of gross home product (GDP), a price thought-about low in comparison with the sector’s potential.
The goal is to extend insurance coverage penetration to five per cent of GDP by 2035, and elevating the proportion of the insured inhabitants from 27 per cent to 45 per cent.
Advantages of a rising insurance coverage sector
There are numerous advantages of elevated insurance coverage premium assortment to the economic system.
Larger premiums imply the insurance coverage business turns into bigger and extra secure, which strengthens the general monetary system.
Insurance coverage firms make investments collected premiums in authorities bonds, infrastructure, and companies. Extra premiums subsequently imply extra funds can be found for nationwide growth tasks.
With extra individuals insured, the economic system turns into extra resilient to shocks equivalent to accidents, pure disasters, or enterprise losses.
A rising insurance coverage sector also can develop operations, resulting in extra jobs in insurance coverage firms and development in associated providers equivalent to brokers, brokers, IT, and authorized providers.
