Insurances

The Insurances market in Rwanda is projected to reach a market size (gross written premium) of US$1.84bn in 2024.
Non-Life Insurances dominate the market with a projected market volume of US$984.90m in 2024.
In 2024, the average spending per capita in the Insurances market in Rwanda amounts to US$127.40.
When compared globally, the United States is expected to have the highest nominal value in the Insurances market in 2024, reaching US$3.8tn.
The gross written premium in Rwanda is expected to show an annual growth rate (CAGR 2024-2029) of 2.74%, resulting in a market volume of US$2.10bn by 2029.
In global comparison, the United States is projected to generate the most gross written premium in 2024, reaching US$3.8tn.
Rwanda's insurance market is experiencing a surge in demand for microinsurance products, driven by the country's focus on financial inclusion and poverty reduction.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in Rwanda is experiencing significant growth and development in recent years. Customer preferences in the insurance market in Rwanda have been shifting towards more comprehensive coverage options, reflecting a growing awareness of the importance of insurance protection. Customers are increasingly seeking policies that offer a wider range of benefits and coverage, including health insurance and property insurance, to safeguard against unforeseen events and risks. Trends in the market show a notable increase in the adoption of technology and digital platforms for insurance services in Rwanda. Insurers are leveraging digital tools to enhance customer experience, streamline processes, and reach a larger customer base. This trend is driven by the rising penetration of smartphones and internet connectivity in the country, making digital insurance solutions more accessible to the population. Local special circumstances in Rwanda, such as the government's efforts to promote financial inclusion and regulatory reforms in the insurance sector, are playing a crucial role in shaping the market dynamics. The implementation of policies to enhance insurance penetration and consumer protection is creating a more conducive environment for insurance companies to expand their operations and offerings in the country. Underlying macroeconomic factors, including steady economic growth, increasing disposable income levels, and a growing middle-class population, are contributing to the positive outlook for the insurance market in Rwanda. As the economy continues to develop and consumer purchasing power rises, the demand for insurance products and services is expected to further increase, driving the growth of the market in the coming years.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.