Experts are optimistic that innovative products are likely to push for insurance uptake that is still facing challenges of affordability as well less awareness on the side of the population which continues to hurt the sector.
According to Central Bank statistics, only 9 percent in 2016 have or use insurance products but up from 7 percent in 2012 implying that 91 percent of the population cannot access insurance products.
“What we are doing is to tailor products that address the client’s challenges and one of this is to use technology,” said John Bugunya, Chief executive Officer at Prime Insurance on Friday.
With the use of technology such as shifting mobile phones and internet will enable accessibility of the products where a person can access them (insurance products) at their convenience.
“The economy is shifting to cash lite and as insurers we need to capture that advantage to apply technology in our services,” he added.
But also, Insurers say that the use of technology will make insurance products easier to understand thus solving the challenge of complexity of most products.
“We want insurance operations in Rwanda to go Digital so that they can be accessible and also understood by people which will increase their uptake,” said Patrick Nouh, Chief executive officer, Saham Assurance.
Sahama Assurance, a Moroccan pan Africa group acquired 67 percent stake in Corar Insurance Company bringing an international experience in the country’s fragile sector.
Currently, most insurers still use the office and branch method of extending products to communities which limits accessibility, moreover, Finscope Survey 2016 indicates that the hindrance in insurance uptake is affordability 59 percent and lack of awareness 37 percent.
According to the survey, medical insurance takes the highest uptake 66 percent with Rwanda social security board 37 percent, life insurance 12 percent , third party 12 percent , private pension 12 percent, credit life 11 percent , household insurance 5 percent and agriculture cover 4 percent.