Sonarwa to launch new insurance products

Rwanda’s oldest insurance services provider, Sonarwa General Insurance has announced plans to regain its market share as one of the leading insurers in the country.

The plan includes availing new products like crop and medical liability insurance among others.

According to Charles Karake, the firm’s board chairman, the company has been losing its lead position in the market as new insurance companies join the industry.

Karake said the strategic plan will be finalised this month when the board meets.

“For us to regain our customers and get more, we are looking at introducing products like medical liability insurance which will allow customers to get treatment even when they are out of Rwanda,” he said.

Karake is optimistic that with the new products such as crop insurance for farmers and efficient service delivery, the firm could add more relevance to the market.

According to figures from the insurer, between January and October 2014, the company paid Rwf 4.2 billion in claims which Soji Emiola; the firm’s managing director said was as a result of their improved commitment towards paying claims.

“We not only want to pay claims but also want to do it promptly basing on the information we are able to get from our customers during the claims processes,” Emiola said.

The 40-year-old insurance company has a market share of about 17 per cent.

It’s therefore vital for the firm to innovate further to be able to survive the growing competition.

Emiola said the economy which still has low levels of insurance penetration (about 1.6 per cent) presented opportunities for the insurers as it is growing at a fast rate.

The insurance sector still has a low uptake of policies, with the private insurers receiving Rwf34.9 billion in premiums during the third quarter of last year, a small increase from the Rwf32.4 billion recorded in the same period in 2013

The central bank acknowledged that paid claims had increased last year, from Rwf13.6 billion in the third quarter of 2013 to Rwf14.9 billion in the same period last year.