20 Feb Rwanda Insurers Association: Fire Insurance Drops 17%
According to the Rwanda Insurers Association, assets insured against fire stood at over Rwf5.2 trillion by the end of 2021, a drop on previous years.
Fire insurance cover stood at Rwf6trillion in 2020 while in 2019 it stood at Rwf6.3trillion – highlighting an overall 17.4% decline. Figures from 2022 are yet to be released for comparison.
The same period also showed a persistent drop in the number of people taking out fire insurance. In 2021, there were 25,927 customers, 2020 there was 28,495 customers and in 2019 there were 28,25 customers – indicating around a 10% drop.
The association linked these reductions to covid-19, saying that in some instances, cash flows dropped and optional insurance covers were suspended. At the same time, potential new policies and renewals also reduced.
It pointed out that during the pandemic only insurance covers that were required by banks to protect mortgages along with a few other customers retained their fire insurance policies.
Given the population of Rwanda (estimated to be 13 million) and the growth trend of the Rwandan economy, the rate of fire insurance uptake remains significantly low.
The association’s executive committee members made a number of recommendations to drive the uptake of such policies, including insurance being viewed and positioned as a national priority. In addition, they also recommended that the government consider incentives, such as a percentage deduction on property tax.