SanlamAllianz launches into the Rwandan insurance market

SanlamAllianz, a joint venture between Sanlam and Allianz, has recently made a significant entry into the Rwandan insurance market with the objective of revolutionizing insurance products to suit the specific needs of Rwandans. In an exclusive interview with CNBC Africa, Robert Domese, the Chief Executive of SanlamAllianz Life Insurance, shed light on the partnership and its potential impact on the Rwandan insurance sector. Domese emphasized the primary goal of the joint venture, which is to enhance insurance penetration in the Rwandan market. Acknowledging the remarkable progress in the country's economy, Domese expressed enthusiasm about being part of Rwanda's economic development. Following the joint venture with Allianz, one of the largest insurers globally, SanlamAllianz aims to expand and elevate the insurance industry in Rwanda substantially. Despite having a presence in Rwanda for several years, Sanlam decided to collaborate with Allianz to enhance its insurance offerings and drive growth in the market. Domese highlighted the significant potential for growth in the Rwandan insurance sector, given the current low insurance penetration rate. While discussing their research findings on the Rwandan market, Domese pointed out that the insurance penetration in the country remains below 0.5% of GDP, significantly lower than the global average of around 4% for life insurance. He lauded the doubling of insurance premiums as a percentage of GDP since Sanlam's involvement in 2014-15, indicating promising growth in the life insurance segment. However, he stressed the necessity of further expanding the sector to align with Rwanda's economic needs. Domese elaborated on the various innovative strategies being introduced to promote financial inclusion and enhance customer experience in the Rwandan market. While digital solutions are crucial in today's landscape, Domese highlighted the importance of leveraging traditional business models, such as engaging more agents and collaborating with banks to increase the reach of insurance products. Emphasizing the critical role of paying claims promptly to retain customer trust, Domese underscored the significance of customer-centric strategies in the insurance business. The interview also delved into the synergies between Sanlam and Allianz in benefiting the local insurance industry. Domese outlined the amalgamation of the two entities' resources to drive growth and leverage best practices from each organization's expertise. With a focus on combining Sunlum and Allianz's strengths, the joint venture seeks to enhance operational efficiency and capitalize on market opportunities in Rwanda. Additionally, Domese highlighted the favorable regulatory environment in Rwanda, emphasizing the importance of adherence to regulations for a transparent and competitive market landscape. When questioned about financial expectations and return on investment, Domese shared the key performance indicators for their life insurance business in Rwanda, highlighting the importance of meeting set targets while aiming for sustainable growth. Domese also addressed the role of financial literacy programs in reaching rural communities, emphasizing the need to develop relevant and accessible insurance products tailored to local preferences. By prioritizing product innovation and customer-centric approaches, SanlamAllianz aims to create a more inclusive and sustainable insurance market in Rwanda. Looking ahead, the joint venture's expansion plans encompass rebranding operations in multiple African markets, with a strategic focus on driving insurance penetration and fostering economic development across the continent.