Rwanda witnesses insurance sector boom
Recent reforms by the Central Bank to boost the insurance industry in Rwanda seem to have borne their fruits, as new figures from the National Bank of Rwanda reveal that the sector grew by 36 per cent between 2011 and 2012.The change in fortune is a result of the 2009 legislation that aligned operations to international best practices, separating underwriting of life and general insurance to ensure efficiency, according to Rwanda Focus.
"Ever since the central bank started supervising the insurance sector, the number of policy holders increased as this protected their interests," Bonaventure Sangano, a central bank official, told the New Times.
He added that separation of life and non-life insurance, instituting of corporate governance structures, coupled with the latest licensing of a number of insurance companies, boosted capitalisation and ensured efficient management.
By the end of 2011, the sector had a total of 11 insurers in the entire market. However, by the end of 2012 the number had increased to 152 insurance agents.