Life insurance - Rwanda

Rwanda

The Life insurance market market in Rwanda is expected to reach a projected market size (gross written premium) of US$0.85bn in 2024.
The average spending per capita in the Life insurance market market is estimated to be US$59.12 in 2024.
The gross written premium is anticipated to grow at an annual rate of 2.89% (CAGR 2024-2029), resulting in a market volume of US$0.98bn by 2029.
In global comparison, the United States is expected to generate the highest gross written premium in the Life insurance market market, reaching US$1,288.0bn in 2024.
Rwanda's life insurance market is experiencing substantial growth, driven by increasing consumer awareness and government efforts to promote financial inclusion.

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Analyst Opinion

The Life insurance market in Rwanda has been experiencing significant growth in recent years.

Customer preferences: Rwandan customers are increasingly recognizing the importance of life insurance as a means of securing their financial future and protecting their families. The rising awareness about the benefits of life insurance, such as providing financial stability in times of need, has been driving the demand for life insurance products in the country.

Trends in the market: One of the key trends in the Rwandan life insurance market is the introduction of innovative and customized life insurance products to cater to the specific needs of customers. Insurers are focusing on developing products that are affordable and provide comprehensive coverage to attract a wider customer base. Additionally, there is a growing trend of digitalization in the distribution of life insurance products, making it more convenient for customers to purchase policies.

Local special circumstances: Rwanda's unique demographic profile, with a young and growing population, presents a significant opportunity for the life insurance market. As the middle-class population continues to expand, there is a greater disposable income available for investment in life insurance products. Moreover, the government's efforts to promote financial inclusion and stability are also contributing to the growth of the life insurance sector in Rwanda.

Underlying macroeconomic factors: The stable economic environment in Rwanda, coupled with steady GDP growth, is creating a favorable landscape for the development of the life insurance market. As the country continues to experience economic growth and stability, more individuals and families are seeking ways to protect their assets and secure their financial future through life insurance. Additionally, regulatory reforms and initiatives aimed at strengthening the insurance sector are further supporting the growth and development of the life insurance market in Rwanda.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.