Members of the Parliamentary Standing Committee on Economy and Trade held discussions last week on the draft microinsurance law with stakeholders.
Small businesses will have access to affordable insurance cover to cushion them against future losses resulting from accidents such as fire or disasters once the new Bill is voted into law, reported The New Times.
The draft law was sponsored by the Rwanda Insurers Association (ASSAR) and the National Bank of Rwanda, which is the regulator of the insurance sector.
The law seeks, among other things, to implement the recommendations of Rwanda Financial Sector Development Programme to establish an inclusive insurance sector by developing microinsurance products.
Ms Peace Masozera Uwase, executive director of the Financial Stability Directorate of the National Bank of Rwanda, said that small businesspeople such as those who own shops, motorcycle taxi operators, farmers and others in the informal sector will be able to insure their property, their lives and those of their family at affordable premiums.
With an insurance penetration of 1.7% in Rwanda currently, Ms Uwase said, “We see microinsurance as a key avenue for promoting insurance and driving up that ratio to GDP.”
Mr Jean Pierre Majoro, executive secretary of the Rwanda Insurers’ Association, said microinsurance will serve about 5m customers of savings and credits cooperatives.
Currently, 14 insurers operate in Rwanda of which 12 are private insurers. The total number of insurance policyholders stood at over 795,900 at 30 June 2019, representing 11% of the total adult population.