Last week, John Rwangombwa, the central bank governor, urged insurance service providers to come up with new and innovative products to propel penetration levels.
This was during the launch of Saham Assurance Rwanda, which rebranded from Corar Insurance company.
The governor's message was a timely reminder because, despite the steady growth of the insurance sector over the years, Rwanda's insurance penetration rate remains among the lowest in the region - at only 2 per cent.
Experts say the sector has a lot of potential, but the stakeholders need to do more by coming up with strategies targeting especially the business community, corporate organisations, and individual citizens. There is need for more sensitisation drives on the importance of insurance for individuals and businesses. In the past, businesses have lost merchandise and properties worth millions in fires because of lack of insurance cover.
The key players in the sector need to do more research on why the penetration level remains very low, and what can be done to reverse the situation. One of the ways is for insurance service providers to come up with unique and innovative products that will attract more clients.
More innovative products and sensitization will help increase penetration levels since many people are still ignorant of insurance benefits. Some of the insurance products on the market are not tailor-made to address specific insurance needs of individuals and organizations.
Insurance service providers should also undertake regular visits to different organizations and communities to establish their insurance needs, which will also help service providers to come up with relevant packages for the market. There is need for more deliberate efforts to give Rwandans products that suit their different needs and income levels.