East African Business Week

KIGALI, RWANDA - More Rwandans and businesses are increasingly buying insurance, which could prompt desired competition to diversify insurance products and cover sectors like agriculture.
Gross premiums jumped 10.6% to Rwf53 billion in 2010 from Rwf47.9 billion in 2009, representing 2.6% of Rwanda's total value of goods and services also referred to as Gross Domestic Product (GDP).
Assets rose by 15.7% to Rwf119 billion in 2010 from Rwf102.9 billion the year before, representing 3.6% of GDP.
At the same time, insurance market penetration increased to 2% from 1%.
However, Rwanda's insurance penetration remains far below that of middle-income countries. For instance, South Africa's insurance penetration is 25%.
Rwanda seeks to attain 10% insurance penetration by 2020 meaning it needs not less than 15 years to reach South Africa.  
The Deputy Governor of the National Bank of Rwanda (BNR), the industry regulator, Claver Gatete told East African Business Week that since 2000, life insurance was introduced in the country and it has positively influenced in the industry.
BNR wants life insurance and non-life insurance products separated.
Car and property insurance used to dominate but medical insurance, which is mandatory in the public service and few large companies, is also growing enormously.
RAMA, a government insurance company which sells medical insurance services to government employees and employees of some large corporations contributed largely to the increase in total assets of the insurers, Gatete said.
Meanwhile, insurance penetration figures do not take into account community based medical insurance also known as Mutual Health Insurance, which is subscribed to the tune of above 90%.
The subscription-based service is being revised to take into account one's economic status rather than a flat contribution fee for everyone. In the new set up, the poor will pay less compared to the rich.
Gatete said that once Mutual Health Insurance database is completed and fed into the national data bank, it will boost insurance penetration statistics.
The industry continues to benefit from a legal and regulatory framework and more laws and regulations are in the pipeline to ensure efficiency and transparency.
Currently, the Rwandan insurance industry is comprised of seven private insurers and two public insurers, making a total of 9 insurance companies, four licensed insurance brokers and 120 insurance agents.