Life insurance in Rwanda: Challenges and Problems

Life insurance in Rwanda has registered a very low market penetration rate while other insurance products have been doing relatively well. This brings to surface some pertinent questions: Can insurance firms play their role successfully in the growth of Rwandan economy? As a result of the research, the life insurance has suffered from lack of skilled employees.The research evidence suggests that there is a poor design of products.The insurance business is negatively affected by the poor savings culture aggravated by low disposable income levels among the population. Many distribution channels are still unexploited and the life insurance contracts are not easy to understand because they are generally designed in a user unfriendly manner. In terms of use of technology, the life insurance business has lagged behind. The recommendations drawn from the research should benefit to insurers, teaching institutions, brokers and/or agents, and the government.