BUJUMBURA September 22nd (ABP) – The Insurance Regulation and Control Agency (ARCA) organized a press briefing on Wednesday, September 20, 2023, in Bujumbura, to the update of the minimum rate for automobile civil liability insurance. On that occasion, the secretary general of the Insurance Regulation and Control Agency, Dr. Joseph Butore, indicated that in terms of transport, the 2011 rates are different from those of 2023. That is why following the increase in the old rates in this area; the pricing would have to be increased by approximately 44%.
According to him, a minimum price must be set which fits with the technical and economic parameters of the moment to protect victims by guaranteeing them compensation, following damage caused by a motor vehicle, its trailers or its semi-trailers in circulation.
Considering ARCA’s mission to ensure that companies keep their commitments to policyholders and beneficiaries of insurance contracts, he added, the great challenge that must be addressed to the problems of compensation in automobile insurance, is that players in the sector can carry out an actuarial study which would show with supporting figures how many motorcycles and vehicles are insurable in Burundi.
That actuarial study on automobile insurance pricing will be able to propose the price taking into account macroeconomic indicators and claims experience. This study will have to revise the current rate upwards so as not to endanger insurance companies, he said.
You will know that the setting of the minimum rate is increased so that policyholders can easily receive compensation in the event of accidents or other failures; even insurers will be able to receive their shares in installments of one month, 3 months or 6 month.