Insurance Services and Protection of Economic Resources of Production in Rwanda in Sonarwa

1David Nyambane and 2Uwayezu Christine

1Faculty of Business and Management, Kampala International University, Western Campus, Uganda.

2Faculty Business Administration (Accounting and Finance Option) of Mount Kenya University


The focus of this study was to assess the contribution of insurance services in the protection of economic resources of production, taking SONARWA Insurance Company as a case study. The study used a descriptive method whereby both qualitative and quantitative data were sought. The target population consisted of managers in public companies, private companies, semi-public companies, NGOs as well as individual clients who are experienced and paid a considerable premium and also employees of Sonarwa General who are managers and employees working in different departments. The total population came to 104 insured clients including 25 staff respondents from Sonarwa General in Kigali City. Slovin’s formula was used to calculate the sample size of 62 respondents of whom questionnaires were distributed to them to receive their views. The researcher designed a special interview schedule with insured clients using random sampling as well as top managers using purposive sampling. The data analysis was done using tables generated from SPSS. It was found that there was the effectiveness of insurance services in protecting economic resources as 21.0% of respondents said that quick compensation is one of the elements that make the insurance services of Sonarwa General very effective because the insured restart quickly their activities and continue its course of productivity. On the impact of insurance services from SONARWA on the sustainability of economic resources of the production of insured, 33.9% said that insurance services protect economic resources through the insurance of goods and properties, 17.7% for liability insurance, and 21.0% for financial operations and bid bonds. On the development of various insurance products and provision of opportunities to secure different types and categories of assets of the insured, 26 (41.9%) of respondents agreed that SONARWA-developed services and products protect the resources of the insured to about a tune of 61% to 80% risk protection against internal and external threats to be able to protect the economic resources of production of its clients. In addition, 24.2% of respondents were contented with the way Sonarwa identified major risks that may affect the economic resources of the insured so that it could establish appropriate ways to properly protect the economic resources of the insured against probable risks.

Keywords: Insurance services, SONARWA, Insurance Companies, Economic resources, Insured.


Within the last decade, certain factors have made an unprecedented positive impact on global growth and the development of insurance. These include the liberalization of world trade, increasing efficiency, advances in Information Technology and the integration of the world financial system which now provides unparalleled economic, cultural, and recreational opportunities [1]. These developments have created new opportunities for insurance business in Africa; as the African market is now open for global exploration and competition. Conversely, this has posed new challenges for insurance regulation in Africa. The insurance sector in Rwanda has been established because there was a need to cover losses and damages that different organizations and individuals could suffer. Therefore, different insurance companies were born in the country including SONARWA as the case study of this research. The development of modern insurance services to contribute to the protection of economic business and resources, especially regarding shipping cargo, building property for fire, automobile accidents with motor insurance, and the cost of medical treatment to be alleviated by health insurance that requires effective insurance services that should respond to insured needs [2]. The insurance industry has been helpful to the insured because it helped them minimize the level of loss and reparations. Insurance companies are subjected to certain core principles and methodologies in their working operations which are issued by internationally recognized standard-setting bodies like the International Association of Insurance Supervision (IAIS) for insurers, and the International Organization of Pension Supervisors (IOPS) for pensions. These Core Principles require insurance institutions, among others, to recognize the range of insurance schemes that they can provide to the insured and manage effectively to respond to situational incidents and accidents. BNR as supervisory authority also requires insurance institutions to have a comprehensive problem management process to identify, evaluate, monitor and control or mitigate all material problems and to assess their overall capital adequacy with their insurance profile. It requires that the insurance system should be appropriate to the complexity, size and nature of the institution’s business and should cover the most common organizational problems faced by organizations, such as Strategic, Investment, Liquidity, Operational, Reputational, and Compliance problems.

Losses and resource damages may affect many areas of the organizational activity, such as effects on strategy, operation, finance, technology and environment. In terms of specifics, it may include, for example, loss of key staff, substantial reductions in financial and other resources, severe disruptions to the flow of information and communication, fires or other physical disasters, leading to interruptions of business and or loss of records. It should be advisable for organizations to look for systems and mechanisms that can be used to be able to protect organizations’ economic resources and this varies according to the size and the nature of the organization. In today’s business operations, businesses resort to insurance services that may contribute to the alleviation of loss and damages that the organization may suffer from in the long run. The motive of this study therefore is to assess the contribution of insurance services in the protection of economic resources and it explains how insurance companies develop and establish insurance schemes likely to contribute to the alleviation of loss and damages that the organization is likely to suffer from. Insurance services contribute to the protection of organizations including non-profit organizations and individuals against likely unpredictable incidents and accidents that may lead to the organization’s loss and damage of economic resources.


The key objective of the study was to assess the contribution of insurance services in the protection of economic resources through Sonarwa. This insurance company was as a case study, investigated and many positive results were found but the researcher wanted to investigate and find out how best the company through its insurance schemes/products can contribute to the protection of economic resources of the insured.

To SONARWA management

The development of new insurance products to protect new businesses. This is very important to develop insurance schemes that didn’t exist before to attract new investments that provide more jobs to people as well as protect economic resources in the new investments created in the economic environment. To facilitate the insured to get easily access of economic resources coverage that they need because their economic resources should be covered for their businesses to be productive.

To SONARWA stakeholders and policymakers

In the innovation and ICT systems of insurance services, there should be the sensitivity to claims of insured. To be sensitive to the claims of the insured explains the extent to which insurance companies take into consideration the problem faced by the insured because once the claims of the insured are taken care of insured becomes satisfied and consumes more insurance services to protect economic resources. Social networking communication at the workplace is important for Sonarwa to communicate with the insured and other stakeholders who would like to work with this insurance company. To make this possible the organization should set up a network likely to facilitate the organization’s communication with its stakeholders to work hand in hand with them because it is they that are the reason the organization exists as service beneficiary and service provider.


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CITE AS: David Nyambane and Uwayezu Christine (2023). Insurance Services and Protection of Economic Resources of Production in Rwanda in Sonarwa. INOSR ARTS AND HUMANITIES 9(2):100-119.