BUJUMBURA, July 28th (ABP) – The Prime Minister of the Republic of Burundi, Mr. Gervais Ndirakobuca, proceeded on Thursday, July 25, 2024, to the opening of the third edition of the week dedicated to insurance in Burundi. This activity was organized under the theme “Innovation for the development of the insurance sector”.
In his speech, the Prime Minister said that this week dedicated to insurance in Burundi is celebrated at a time when the improvement of services in insurance companies is a reality. Mr. Ndirakobuca further noted that this week is a good opportunity to raise awareness among the people on the importance of subscribing to insurance in order to protect themselves and their property against possible risks. The Burundian Prime Minister did not fail to invite insurers to initiate public interest actions with a view to contributing to the reduction of road accidents.
To that end, he encouraged insurance companies to honor their commitments to the insured and beneficiaries of insurance contracts in accordance with the provisions of the insurance code because, he said, this will undoubtedly positively influence the image that of insurers towards the population and establish trust between insurers and policyholders.
On that occasion, Mr. Ndirakobuca recalled that the vision of Burundi as an emerging country by 2040 and a developed country in 2060 given that the national policy document is a roadmap for the economic and social development of Burundi that will serve current and future generations. The success of its implementation, he said, requires its appropriation by all in order to strengthen the participation and commitment of all citizens, civil society, the private sector, non-governmental organizations, the international community as well as development partners.
Thus, the Prime Minister urged the players in the insurance industry to make this vision their own in order to contribute by developing their sector of activity.
Furthermore, the Burundian Prime Minister has no doubt that insurers will use ICT to improve the population’s access to insurance services by developing electronic platforms for subscription and claims settlement.
Mr. Ndirakobuca also invites insurers to implement other strategies likely to improve the financial inclusion of the population and the relations between insurers and their customers. He took the opportunity to announce that the government of Burundi will spare no effort to provide its unwavering support to the initiatives that will be taken to promote the insurance sector in Burundi, adding that it will do everything possible to ensure that the challenges and constraints that hinder its growth are removed.
For his part, the Minister of Finance, Budget and Economic Planning, Mr. Audace Niyonzima, praised the work in synergy of the Insurance Regulatory and Control Authority (ARCA) and the sector’s stakeholders so that the insurance sector contributes significantly to the country’s economic development. This synergy will help remove a good number of challenges and constraints facing the sector, he said.
According to him, the insurance industry now has 32 insurance companies with a total of 450 employees. He continued to say that the turnover of the insurance sector has experienced good growth as it has recorded continuous growth from 54.4 billion BIF in 2019 to nearly 90 billion BIF in 2023. Regarding the services of insurance companies, he stressed that they have increased overall from 18.9 billion in 2022 to more than 23 billion in 2023.
According to the minister, the rate of payment of claims is now satisfactory because ARCA has been working since 2022 to pay claims within the legal deadlines by insurance companies in execution of the recommendations made by the Cabinet in 2021.
The representative of the insurance industry who is also chairperson of the Burundi Insurance Association, Mr. Rénovat Gahungu, specified that they organized this week with the aim of raising awareness among authorities, potential policyholders and the entire Burundian population on the interest and role of insurance in the economic development of Burundi.
It is worthy to note that the Prime Minister closed this ceremony by laying the first stone of the speed bumps on Muyinga Avenue in Bujumbura City as part of Insurance Week.