

































 IJO- INTERNATIONAL JOURNAL OF SOCIAL SCIENCE AND HUMANITIES RESEARCH  
( ISSN 2811-2466 )                                                                                                                              Obiora Peters, EMEKA Phd1*  

https://ijojournals.com/                                                                             Volume 08 || Issue 08 || August, 2025 || 

“DETERMINANTS OF INSURANCE UPTAKE IN RWANDA A CASE STUDY OF RADIANT INSURANCE COMPANY LIMITED (2020-2024)" 

 

 

DETERMINANTS OF INSURANCE UPTAKE IN RWANDA 

A CASE STUDY OF RADIANT INSURANCE COMPANY LIMITED 

(2020-2024) 

Obiora Peters, EMEKA Phd 

School of Postgraduate Studies, Kigali Independent University ULK, Kigali, 

Rwanda 

Amani Manzi Alain 

Kigali Independent University ULK 

Uwazigira Daphrose 

Kigali Independent University ULK 

ABSTRACT 

Several factors work for and against the uptake of insurance relationship in Rwanda and hinders the 
growth of insurance subsector. This study sets out to determine the factors that promote and barriers that 
hinder insurance uptake in Rwanda Radiant Insurance using a quantitative method and case study design 
on a population of 16,606 customers,and 375 clients were sampled using simple random sampling 
technique. The regression model was used in data analysis. The results shows that;insurance knowledge 
β = 0.327 (p = 0.01),skills (β = 0.490, p = 0.000)behaviour(β = 0.300,p = 0.001), &accessibility(β = 
0.336,p=0.001) all has significant positive determination on insurance uptake. Although,were able to 
explain 8.4% of the variability of uptake of insurance.The mean of barriers to uptake was 1.48 
suggesting severe(high) and non significant obstacles(low) towards uptake. Based on this outcome, the 
study concludes that insurance knowledge, skills, behaviour, accessibility positively determines 
insurance uptake. Additionally, the results concludes that primary barriers to insurance uptake relate to 
cost and the perceived value of insurance, followed by procedural and trust issues. The study therefore 
recommends enhancement of insurance literacy,Develop Customer-Centered Products,Strengthen 
Practical Skills Among Clients,Promote Positive Insurance Behavior,Leverage Technology for 
Accessibility and Foster Trust and Transparency. 

Key words: Determinants, Insurance, Penetration rate, Insurance uptake, barriers to uptake 

 

1.0 Introduction 

This section portrays the funnel background, statement of the problem and the objectives of study 
knitted on the tale of the introduction. 

 

 

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 IJO- INTERNATIONAL JOURNAL OF SOCIAL SCIENCE AND HUMANITIES RESEARCH  
( ISSN 2811-2466 )                                                                                                                              Obiora Peters, EMEKA Phd1*  

https://ijojournals.com/                                                                             Volume 08 || Issue 08 || August, 2025 || 

“DETERMINANTS OF INSURANCE UPTAKE IN RWANDA A CASE STUDY OF RADIANT INSURANCE COMPANY LIMITED (2020-2024)" 

 

 

1.1Background of the Study 

Insurance is a major aspect of economic development at the global scene, given that it provides financial 
safeguard against unexpected risks, household resilience and economic stability. Nevertheless, the world 
situation with insurance adoption is deeply unequal. The high-income economies are approximately 63 
percent of adults with some policy cover like health, life or property as compared to the 13 percent of 
the low income countries, according to Demirguc-Kunt and others (2022). Swiss Re Institute (2022) also 
described that, whereas the world had faced more than USD 7 trillion in premiums in 2021, Africa 
contributed less than 1.5 percent to it. Such world disparities are influenced by socio-economic, 
institutional and behavioural conditions such as income levels, literacy, access to digital information, 
trust to policy guidelines and cultures that can accept insurance products. 

 

The insurance business in Africa is underdeveloped even though there is a rising demand of financial 
inclusion. According to the African Insurance Organization (2023), the insurance penetration in the 
continent will be 2.7 percent of the GDP, however, leaving out South Africa will bring it under 1 
percent. As scholars like Hougaard et al. (2012) as well as Roth et al. (2007) pointed out, the lack of 
financial awareness, mistrust of insurance organizations and products misalignment with native realities 
are considerable limitations to uptake. According to Malambo (2023) Africa had a total insurance 
penetration rate of 2.78% in 2019 and this is far lower than the global average rate of penetration that 
stands at 7.23%. Specifically, most Africans relate insurance to foreign ways of risk-sharing or even 
elite, which discourages use in the rural or low income communities. Nevertheless, mobile 
microinsurance and packaged insurance products related to health, agriculture, or credit services have 
proven to be promising in increasing reach. 

In East Africa, there is an upsurge in insurance development although the penetration levels are not at a 
high level. Even such countries as Kenya (2.3%), Tanzania (1.5%), Uganda (0.9%), and Rwanda (1.7%) 
are below the international standards (EAISA, 2023). Empirical evidence as Muiruri and Bosire (2020) 
in Kenya and Kiiza and Pederson (2021) in Uganda can testify to the fact that financial literacy, 
affordability, accessibility of services, and a positive experience about the claims are some of the 
determinants of uptake. In Kenya, digital platforms such as M-TIBA and Kilimo Salama are emerging to 
facilitate delivery of insurance, particularly in health and agricultural insurance. In case of Rwanda and 
Tanzania, government-sponsored health programs have managed to raise the national coverage of health 
but not voluntary insurance across other of them, such as life, property, or SME insurance. Moreover, 
the insurance penetration rate in East Africa stands at 1.39 in 2022 and Kenya is the leader 2.14 
followed by Tanzania 0.62, Uganda 0.74 and Ethiopia 0.3 

There is a paradox with regards to the insurance development in Rwanda. Though the health insurance 
cover is almost universal in the country, linked to schemes like Mutuelle de Santhe, the enrollmentinto 
other insurance schemes is very low. According to the National Bank of Rwanda (BNR, 2023), the 
general insurance penetration rate in Rwanda was 1.7 percent of GDP, and the total amount of premiums 
amounted to about 36 million dollars and the market is dominated by non-life insurance. Finscope 
Rwanda (2020) revealed that in Rwanda, only 12 percent of adult families are insured, whether by life 
insurance or voluntary. Mobile ownership is over 78 percent (GSMA, 2022), yet there is a low 
consumption of insurance subscription beyond the mandatory schemes. Kabera and Mugisha (2021) and 

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 IJO- INTERNATIONAL JOURNAL OF SOCIAL SCIENCE AND HUMANITIES RESEARCH  
( ISSN 2811-2466 )                                                                                                                              Obiora Peters, EMEKA Phd1*  

https://ijojournals.com/                                                                             Volume 08 || Issue 08 || August, 2025 || 

“DETERMINANTS OF INSURANCE UPTAKE IN RWANDA A CASE STUDY OF RADIANT INSURANCE COMPANY LIMITED (2020-2024)" 

 

 

Nzeyimana et al. (2022) found cultural beliefs, lack of education, negative claims experiences, and 
affordability to be big obstacles to broader use. It was observed that the consumption of insurance is 
better in more developed economies (Allianz Research, 2024; OECD, 2024). 

Particularly urgent, is a study like this, when considered through the lenses of the Rwandan Radiant 
Insurance Company Limited, which is among the most prominent indigenous insurers in the country. 
Radiant Insurance was founded in 2011 and ever since; it acted as a major player towards increasing 
general and health insurance products in the country. The company has advanced with motor, fire, health 
and group life insurance and has also earned significant recognition in the endeavors to reach out to 
urban as well as semi-urban markets. Nevertheless, in its product diversification and nation wide 
availability, Radiant Insurance has still struggled with customer acquisition and retention of non-
mandatory insurance segments as many players in the Rwanda market. 

 

Internal performance reports and sector statistics indicate that Radiant Insurance is still grappling with 
the idea of growing in individual life and property insurance particularly on informal sector workers and 
people in the countryside. Based on anecdotal evidence, as well as preliminary surveys, it is clear that 
most of the potential clients either do not know about Radiant offerings or they consider insurance 
undependable or they believe insurance to be too expensive. This is in accordance to the trends at the 
national level where most consumers tend to be shy of approaching the services of privately owned 
insurers unless obliged by a law. Also, the hurdle that Radiant faces is the fact that, it does not have a 
wide channel of distribution, the literacy of the people towards insurance and the strong competition in 
the market by both local and foreign insurance companies in the similar market. 

However, Radiant Insurance will be in a unique situation because it is a home grown Rwandan insurace 
close to the locals, with knowledge of their culture, and operating flexibility. It has the prospect of 
leading the way in terms of inclusive models of insurance, but this is unfulfilled. Consequently, the 
research aims at addressing the determinants of insurance uptake and barriers in Rwanda as a matter of 
urgency using the case of radiant Insurance Company limited. This research can help to extract more 
actionable insights not only about Radiant but also about the insurance industry in Rwanda as a whole 
since it has defined the main factors that affect customer behavior such as the economy capacity and 
awareness, trust, and services delivery. 

With Rwanda executing the National Financial Sector Development Strategic Plan (2021-2025), that 
places emphasis on the insurance market deepening and financial inclusion, it is only worth noting that 
companies such as Radiant Insurance urgently need an academic and policy interest to understand their 
operational obstacles. Unless stringent empirical studies are conducted towards the cause of why 
Rwandans, particularly in the informal and rural sectors are underinsured, efforts of the nation towards 
risk protection, wealth preservation and social stability might be thwarted. 

 

2.0 Literature Review 

2.1 Conceptual Review 

 

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 IJO- INTERNATIONAL JOURNAL OF SOCIAL SCIENCE AND HUMANITIES RESEARCH  
( ISSN 2811-2466 )                                                                                                                              Obiora Peters, EMEKA Phd1*  

https://ijojournals.com/                                                                             Volume 08 || Issue 08 || August, 2025 || 

“DETERMINANTS OF INSURANCE UPTAKE IN RWANDA A CASE STUDY OF RADIANT INSURANCE COMPANY LIMITED (2020-2024)" 

 

 

Insurance Uptake 

Insurance uptake is described as the acquisition and continuous uptake of insurance products to handle 
risks in finances. According to the World Bank (2021) and Roth et al. (2007), it is considered to be a 
financial inclusion metric as well as a protection mechanism against income shocks. Such recent 
literature (Cole et al., 2013; Ginine & Yang, 2009) points out to the fact that uptake is supported by 
various drivers like the economic capacity, trust, awareness, accessibility, and product relevance. 
According to Cole et al. (2013), the world over, the trust and literacy levels are more important than the 
price whereas Gin in et al. (2010) stressed the role of financial bundling insurance with services such as 
credit. In Nigeria, reliability, claims satisfaction, and cultural attitudes were among the determinants of 
life insurance demand as confirmed by Akotey et al. (2022). Researchers in Kenya showed how mobile 
platforms increased uptake of studies Muiruri and Bosire (2020) and researchers in Uganda and 
Tanzania showed an increase in adoption on bundling products with health or farming services Leach 
and Ncube (2021). Rwanda Over 90 percent of the population is covered by health insurance in the form 
of Mutuelle de Sant (RSSB, 2023), but there is lack of insurance uptake concerning life and property. 
According to Finscope Rwanda (2020), only 12 percent of adults have other types of insurance. Factors 
such as affordability, the lack of education, lack of confidence to insurers, and cultural resistance are 
among the barriers identified (Kabera & Mugisha, 2021). Other important aspects of increasing financial 
literacy (Lusardi & Mitchell, 2017) however, customer experience (Zhang et al., 2020), product design 
(Microinsurance Network, 2022), and regulatory support (OECD, 2023; Outreville, 2014) are 
emphasized in the literature as being essential in the process of increasing uptake. It is vital, yet 
insufficiently important to be literate about insurance. Although it enhances understanding (Cohen, 
2023; Malambo et al., 2024), research in Kenya and India demonstrates that trustability and affordability 
is also applicable (Kiplagat et al., 2021; Banerjee & Duflo, 2019). Additionally, product mismatch and 
complicated regulatory phrasing limit uptake (Wasike, 2019). In general, due of the rise in insurance 
enrolment, issues including low literacy, mistrust, and product accessibility must be addressed. Access 
obstacles Due to technological advancements, particularly mobile-based insurance, access hurdles are 
decreasing, particularly in Sub-Saharan Africa (GSMA, 2022) is closing access gaps, especially in Sub-
Saharan Africa. Perhaps,the task is to enhance both demand- and supply-side issues to access more 
insurance by means of education, trust, product development, and regulatory changes. Overall in 
Rwanda, although the health sector has been successful, insurances are not penetrated widely hence 
more research and specific interventions have to be done. 

Research has indicated that demographics, income, education, trust and awareness are the factors that 
affect uptake of insurance. As observed by Rainer (2020) and Turyamureba et al. (2022), age, marital 
status, media access, and wealth do have an influential impact on health insurance enrolment in 
Tanzania and Uganda. Malambo and Qutieshat (2024) emphasized that lack of awareness and poverty 
are some of the problems that impede up-take in Botswana. Confidence in the providers had the most 
significant impact on the insurance inclusion correlated with the awareness role played by agents (Tsai-
Jyh, 2021). 

 

 

 

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 IJO- INTERNATIONAL JOURNAL OF SOCIAL SCIENCE AND HUMANITIES RESEARCH  
( ISSN 2811-2466 )                                                                                                                              Obiora Peters, EMEKA Phd1*  

https://ijojournals.com/                                                                             Volume 08 || Issue 08 || August, 2025 || 

“DETERMINANTS OF INSURANCE UPTAKE IN RWANDA A CASE STUDY OF RADIANT INSURANCE COMPANY LIMITED (2020-2024)" 

 

 

2.1.2.  Barriers to Insurance Uptake 

The barriers to insurance uptake are defined as an economically, behaviorally, institutional and cultural 
constraints that restrains individuals or even organizations to access or even to maintain insurance 
products. The most fundamental aspect of these obstacles would be the question of affordability 
especially in low-income environments where day to day survival necessities have priority over 
budgeting. The research findings of Cole et al. (2013) and Gin and Yang (2009) indicate that, despite 
subsidization of insurance products, there is also limited uptake when disposable income in the country 
is low, particularly among the informal workers as well as when dealing with rural households. At 
individual level, the obstacles comprise poor awareness of insurance products and advantages, failure to 
comprehend insurance concepts and terminologies, incorrect estimation or exaggeration of personal 
hazards, premium prices against one income level, and distrust of the insurance firms or brokers 
(Zewdneh,et al 2021). A high level of ignorance and illiteracy in finance is another great barrier. The 
problem is that many people do not know how the insurance works, what it covers, and how one can 
deal with the claims. According to Lusardi and Mitchell (2017), low understanding of the risk pooling 
and premiums has a direct relationship to avoiding insurance.  

In Sub-Saharan Africa, Finscope (2020) indicated that over half (55.5 percent) of uninsured adults had 
never been exposed to any information concerning insurance and therefore education is a key access 
point to reach more participants on uptake. Past experience and trust is also a major role player. The 
greater the conviction that consumers have that the providers are reliable and responsive the more likely 
they are to adopt insurance. Akotey et al. (2022) and Zhang et al. (2020) observed that the negative 
experiences in the form of delayed settlements on claims or policy language mess result in 
discontinuation and the loss of trust. The situation where regulatory enforcement is weak, no one trusts 
the private or public insurers. Attitudes also are influenced by culture and religion. The perception of 
risk in most communities is either spiritual or communal-based and most community members would 
want to utilize the customary coping styles rather than the business insurance. Kabera and Mugisha 
(2021) found out that in rural Rwanda, divinity intervention prevailed among many individuals as the 
pillars of protection instead of monetary agreement therefore laboring on the insurability of insurance 
products. 

On the supply side, uptake is also stunted by the complexity of the products and ineffective distribution 
channels. It is not uncommon to come by insurance products that do not take into consideration local 
needs, sensitivity to literacy levels and payment flexibility. According to the Microinsurance Network 
(2022), most of the low-income clients take policy documents to be too technical and sales procedures to 
be threatening. Also, coverage is limited by the lack of access to agents or online platforms in rural and 
peri-urban locations. The obstacles to the use of insurance are closely connected, but they need an 
integrated approach to overcome them, which conjoins financial literacy, the means of building trust, the 
easing of product design, the ease of payment methods, and regulation. These matters are especially 
pressing to tackle in nascent markets such as Rwanda, with the health insurance enrolment rate already 
very high, other forms of insurance in the country are, however, not being used because of these ongoing 
limitations. 

 

 

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 IJO- INTERNATIONAL JOURNAL OF SOCIAL SCIENCE AND HUMANITIES RESEARCH  
( ISSN 2811-2466 )                                                                                                                              Obiora Peters, EMEKA Phd1*  

https://ijojournals.com/                                                                             Volume 08 || Issue 08 || August, 2025 || 

“DETERMINANTS OF INSURANCE UPTAKE IN RWANDA A CASE STUDY OF RADIANT INSURANCE COMPANY LIMITED (2020-2024)" 

 

 

2.2 Empirical Literature Review 

In a panel study carried out over 42 countries in Africa, Bah and Abila (2022) revealed that the 
institutional quality and mainly regulatory effectiveness and rule of law positively impacted the life and 
non-life insurance penetration significantly. This observation proves that governance structures are a 
critical factor in influencing behavior in insurance. Ngambi et al. (2023) examined the Malawi Multiple 
Indicator Cluster Survey (2019-2020) and demonstrated that age, education, wealth, and geographical 
location are the key determinants that played a critical role in determining whether people would avail 
health insurance. The research found that people who had a secondary education or with higher 
education, as well as people in urban regions, had greater chances to be insured. According to a study 
conducted by Kiwuluka and Sibindi (2023) in Uganda, perceived trust proved the most effective 
determinant of insurance inclusion over the other indicators of the likelihood to be included in insurance, 
such as perceived value and insurance literacy. The results they provide highlight the importance of 
consumer confidence as a factor in developing insurance markets. Kawuki et al. (2022) also investigated 
how education status and health insurance are used in Rwanda in relation to the empowerment indicators 
(such as the decision-making autonomy and media exposure) and found that they had an inverse 
relationship with health insurance usage. The socio-economic status, the size of the household, and 
regional disparities were still powerful predictors, however. This analysis can hardly be found 
nationwide in Rwanda, but Muremyi et al. (2025) highlighted them as some of the contributing factors 
to the low level of health insurance coverage including lack of awareness, financial constraints, and 
delivery of poor health services. They were, however, only focused on the public CBHI scheme. 
Njoumemi et al. (2023) conducted a study in Cameroon and concluded that demographic and 
socioeconomic variables such as income and education had a strong predictive value of health insurance 
coverage. The availability of the local community structures that enable access was also noted in their 
study. 

The LSHTM systematic review (2021) across sub-Saharan Africa identified that the persistent barriers 
were the deficit in trust, low perceived value, low service quality, and awareness to community-based 
insurance health. These also hampered the renewal of schemes and continued policies. A study by 
Cohen (2023) on the insurance literacy in the Netherlands revealed that those with low literacy 
proficiency experienced more difficulty in comprehending, choosing, and appreciating the insurance 
products. The research associated literacy with long run satisfaction and trust. Tsai-Jyh (2021) evaluated 
the importance of the insurance agents in Taiwan and identified a significant relationship between the 
activities of agents and the public awareness. Consumers who communicated with insurance agents 
proved to have much better comprehension and involvement. Turyamureba, Yawe, and Oryema (2022) 
noted that in Uganda, wealth, education, marital status, and access to information through media were 
strong factors that affected the demand of the private health insurance. The combination of these 
variables was predictive especially in the urban dwellers. 

 

Malambo and Qutieshat (2024) listed extreme poverty, low levels of awareness, and the absence of the 
targeted education campaigns as the primary life insurance uptake limiting factors in Botswana. Their 
research emphasizes that what works will be specific financial literacy interventions. According to 
Rukundo et al. (2019), the social capital, household economic status, and male employment in casual 
labor were related to the enrolment in the community-based health insurance in rural Uganda. 

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 IJO- INTERNATIONAL JOURNAL OF SOCIAL SCIENCE AND HUMANITIES RESEARCH  
( ISSN 2811-2466 )                                                                                                                              Obiora Peters, EMEKA Phd1*  

https://ijojournals.com/                                                                             Volume 08 || Issue 08 || August, 2025 || 

“DETERMINANTS OF INSURANCE UPTAKE IN RWANDA A CASE STUDY OF RADIANT INSURANCE COMPANY LIMITED (2020-2024)" 

 

 

Knowledge concerning premium structures was also recognized as necessary in the study. As reported 
by Wasike (2019) and Kiplagat et al. (2021), complicated legal words and cultural understanding do 
make a considerable dent when it comes to taking up insurance in Kenya. Despite these literacy 
campaigns which were increasing awareness, this was not necessarily accompanied with follow through 
in the form of policy implementation. The authors identified the insurance literacy as the factor 
associated with informed financial choices at the global level (Lusardi and Mitchell, 2017). Assumptions 
made by them were that the more the consumers know about an insurance, the more they are likely to 
view it as a worthwhile risk management tool. Gin and Yang in Malawi (2009) showed how 
differentiated crop and rainfall insurance education could play a great role in boosting the penetration of 
insurance among peasants in rural areas supporting the aspect of contextual knowledge in insurance 
utilization. 

2.4 Literature Gaps and Justification for the Study 

The literature on health insurance and microinsurance in sub-Saharan Africa has an impressive amount 
of empirical research, some of which covers Rwanda, but there is a striking lack of literature detailing 
the issue of insurance uptake in the Rwandan context of the private insurance sector. Local research 
tends to identify one community or government scheme and give details regarding it (Kawuki et al., 
2022; Muremyi et al., 2025). No empirical study to the best of our knowledge has analyzed the 
determinants of voluntary or commercial insurance uptake among individuals and small businesses in 
Rwanda. Hence, this current study. 

 

3.0 Methodology 

The study adopted purely descriptive quantitative method along a case study design, using an 
appropriated population of 16606 out which 375 was determined using Krejcie and Morgan(1970) 
formula(Fink, A. (2020;Babbie, E. (2021) maintained that when disaggregated data is inaccessible, 
sampling frames can be approximated. 375 customers where randomly sampled in Kigali to ensure 
representativeness. Due to the absence of exact client distribution data at the Kigali headquarters, the 
study estimated the client population using the proportion of Radiant Insurance branches located in 
Kigali. With 15 out of 185 branches in the city, the estimated Kigali client base from 204818 is 16,606 
(Kumar, R. (2019,; UNESCO Institute for Statistics,2013). This was used to estimate sample size. 
Though it still lack specific numbers of clients of each branch, it can legitimately be stated that this is 
methodologically sound according to other studies that have tried to implement similar research.Primary 
data was collected using a questionnaire while secondary data was collected by reviewing relevant 
literature. The independent variables (the predictors) in this study are the different factors which affect 
the uptake of insurance, and the dependent variable is uptake of insurance. The study measured the each 
variable through the questionnaire in form of Likert’s scale of 5–1 in the manner: 5-Strongly Agree, 4-
Agree, 3-Neutral, 2-Disagree and 1-Strongly Disagree. Then, the study adopted the regression model in 
the analytical process. The model was formulated as follows: 

Y= β0+ β1X1+ β2X2+ β3X3+ β4X4+e 

Where: Y= Insurance uptake, X1 = Insurance knowledge, X2 = Insurance skills, X3 = Insurance Behavior, 
X4 = Insurance accessibility, β1 – β4 = Regression coefficients and e = Error term 

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 IJO- INTERNATIONAL JOURNAL OF SOCIAL SCIENCE AND HUMANITIES RESEARCH  
( ISSN 2811-2466 )                                                                                                                              Obiora Peters, EMEKA Phd1*  

https://ijojournals.com/                                                                             Volume 08 || Issue 08 || August, 2025 || 

“DETERMINANTS OF INSURANCE UPTAKE IN RWANDA A CASE STUDY OF RADIANT INSURANCE COMPANY LIMITED (2020-2024)" 

 

 

4.0 Results and Discussion 

4.1 Descriptive Statistics : Frequency 

Table 1: Merged Respondents’ Views on Insurance in Rwanda  

Category Item Statement Mean Std. 
Deviation 

Perception 
Level 

Insurance Knowledge 
Grand Mean: 5.61 

I am aware of the different types of insurance 
products available in the markets 

5.61 0.489 High 

I understand the basic principles of how insurance 
works 

5.81 0.391 high 

I understand the process of filling an insurance 
claim 

5.79 0.406 high 

I am confident in my ability to choose the right 
insurance products for my needs 

5.75 0.436 high 

I understand common terms in insurance 5.73 0.462 high 

I can easily make decisions on insurance products 5.72 0.465 high 

I always easily put money aside to pay for 
insurance 

5.56 0.511 low 

Insurance Skills 
Grand Mean: 5.69 

I know how to select better insurance products 5.72 0.451 high 

I know how to evaluate the terms and conditions 
of an insurance policy 

5.73 0.459 high 

 I am skilled in understanding and assessing the 
risks that need insurance coverage 

5.72 0.451 high 

I am capable of calculating the premiums and 
coverage for various insurance options 

5.65 0.507 low 

I can easily compute the insurance premium 5.65 0.518 low 

I know the value of my insurance benefits 5.68 0.482 low 

Insurance Behavior 
Grand Mean: 5.75 

 

I regularly review & update my insurance policies 5.71 0.454 low 

I would recommend having insurance to my friends 
and family 

5.75 0.436 high 

I always pay for insurance 5.81 0.413 high 

I am satisfied with the insurance services 5.78 0.447 high 

I always pay insurance premium 5.75 0.451 high 

I always save with insurance 5.70 0.515 low 

I am always interested in issues of insurance 5.78 0.431 high 

I believe that having insurance is essential for 
financial security 

5.75 0.433 high 

I feel confident in my decisions regarding insurance 
purchases 

5.72 0.507 low 

Investing in insurance is a wise financial decision 5.69 0.477 low 

I’m always interested in the other insurance 
products 

5.63 0.499 low 

Insurance 
Accessibility 
Grand Mean:5.75 

 

The process of obtaining insurance from Radiant 
Insurance Company is straightforward 

5.67 0.757 Low 

Insurance products are easily accessible to people 
in many areas 

5.75 0.753 High 

It is easy to access information about Radiant 
Insurance Company’s products 

5.72 0.545 Low 

Radiant Insurance Company has sufficient branch 
locations 

5.73 0.527 Low 

The insurance services are user-friendly 5.65 0.555 Low 

 

 

 

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 IJO- INTERNATIONAL JOURNAL OF SOCIAL SCIENCE AND HUMANITIES RESEARCH  
( ISSN 2811-2466 )                                                                                                                              Obiora Peters, EMEKA Phd1*  

https://ijojournals.com/                                                                             Volume 08 || Issue 08 || August, 2025 || 

“DETERMINANTS OF INSURANCE UPTAKE IN RWANDA A CASE STUDY OF RADIANT INSURANCE COMPANY LIMITED (2020-2024)" 

 

 

Authors Computation 2025 

The table of frequency depicts the level of perception by respondents on the questions posed. The 
perceptions are low or high. For each of the construct, the cumulative response score with low suggests 
that it fall below the mean of the construct as opposed to high. 

4.1 Descriptive Statistics 

Table 2: Barriers to insurance uptake 

Barrier Statement Mean Std. Dev. 
The cost of insurance premiums is high 

for me 
2.29 1.358 

The benefits of insurance do not justify 
its cost 

1.75 1.024 

The process of acquiring insurance takes 
too much time 

1.52 0.925 

Renewing my insurance policy is time-
consuming 

1.41 0.837 

Insurance service providers are located 
far from my residence 

1.47 0.917 

There are no convenient insurance 
service locations near me 

1.50 0.918 

My religious beliefs discourage me from 
taking insurance 

1.36 0.922 

The insurance policies are stringent 1.45 0.945 
Cultural norms in my community 

discourage the uptake of insurance 
1.43 1.006 

Insurance is not considered important in 
my cultural background 

1.25 0.914 

I do not trust insurance companies to 
fulfill their promises 

1.39 0.940 

I would consider insurance if the process 
were quicker 

1.39 0.933 

I’m always discouraged by friends from 
using insurance 

1.33 0.917 

The insurance company does not give 
me enough knowledge about products 

on offer 

1.33 0.857 

The geographical location of insurance 
providers affects my decision 

1.43 0.907 

Mean 1.48  

Authors computation 2025 

The grand mean is 1.48, suggesting that items Above 1.48 are relatively more significant barriers 
compared to the overall average; lean towards agreeing that these factors discourage them from 
insurance uptake. However, those blow the average are less perceived as barriers, not significant 
obstacles and respondents strongly disagree that these issues are reasons for not taking insurance. 

 

 

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 IJO- INTERNATIONAL JOURNAL OF SOCIAL SCIENCE AND HUMANITIES RESEARCH  
( ISSN 2811-2466 )                                                                                                                              Obiora Peters, EMEKA Phd1*  

https://ijojournals.com/                                                                             Volume 08 || Issue 08 || August, 2025 || 

“DETERMINANTS OF INSURANCE UPTAKE IN RWANDA A CASE STUDY OF RADIANT INSURANCE COMPANY LIMITED (2020-2024)" 

 

 

4.2 Correlation Matrix 

Table 4 

 Knowledg

e 

Skills Behavior Accessibil

ity 

Knowledge 

Pearson 

Correlation 
1    

Sig. (2-tailed)     

N 375    

Skills 

Pearson 

Correlation 
.236** 1   

Sig. (2-tailed) .004    

N 375 375   

Behavior 

Pearson 

Correlation 
.293** .324** 1  

Sig. (2-tailed) .000 .000   

N 375 375 375  

Accessibilit

y 

Pearson 

Correlation 
.105 .224** .178* 1 

Sig. (2-tailed) .203 .006 .029  

 N 375 375 375 375 

  Authors’ computation 2025 

The matrix shows that there are positive relationships of all the variables but the strongest are between 

skills and behavior and accessibility has a small but significant influence on how insurance behavior and 

competencies are shaped. This proves the concept of increasing the level of information and viable 

access to enhance the take up of insurance. 

4.3. Model Summary 

A model summary gives a brief account of the statistical or theoretical model of analyzing data or 

explanation of phenomena. It often consists of the main information pertaining to the model structure, 

the assumptions, parameters of the model, and their performance. 

Table 5: Model Summary 

Model R R Square Adjusted R 

Square 

Std. Error of 

the Estimate 

1 0.943a .089 .084 .22477 

A. Predictors: (Constant), Attitude, Behavior, Knowledge, Skills 

Source: SPSS Program V22 

The correlation between the actual and predicted values of the dependent variable is R (0.943). It shows 
a very strong relationship between the predictors (Knowledge, Skills, behavior, accessibility) and the 

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 IJO- INTERNATIONAL JOURNAL OF SOCIAL SCIENCE AND HUMANITIES RESEARCH  
( ISSN 2811-2466 )                                                                                                                              Obiora Peters, EMEKA Phd1*  

https://ijojournals.com/                                                                             Volume 08 || Issue 08 || August, 2025 || 

“DETERMINANTS OF INSURANCE UPTAKE IN RWANDA A CASE STUDY OF RADIANT INSURANCE COMPANY LIMITED (2020-2024)" 

 

 

outcome. Adjusted R2was (0.084) meaning that only 8.4% of the variation in the dependent variable of 
insurance uptake is explained by the four predictors.Standard Error (0.22477): This is the average 
amount by which the actual values differ from the predicted values. A smaller value means more 
accurate predictions 

4.4 ANOVA 

Table 6: ANOVA 

 Sum of 

Squares 

df Mean Square F Sig. 

Knowledge 

Between Groups 1.174 7 .168 .865 .536 

Within Groups 27.538 142 .194   

Total 28.712 149    

skills 

Between Groups 1.696 7 .242 .549 .796 

Within Groups 62.664 142 .441   

Total 64.360 149    

Behaviour 

Between Groups .955 7 .136 .661 .705 

Within Groups 29.335 142 .207   

Total 30.290 149    

Suitability 

Between Groups 1.084 7 .155 2.431 .022 

Within Groups 9.049 142 .064   

Total 10.133 149    

Source: SPSS Program V22 

The ANOVA output indicates the presence of statistically significant differences in the responses to 

insurance uptake factors with regard to the various groups . Knowledge (p = .536) and skills (p = .796) 

do not make any significant difference in perception but suitability (p = .022) does so there is a 

possibility of increasing the uptake of insurance products by tailoring them to the needs of a certain 

customer. 

 

4.5. Coefficients analysis 

The relationships between variables were statistical measured and quantified the degree and direction of 

the relationship,to assist in  understanding how changes in one variable might impact another.  

 

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 IJO- INTERNATIONAL JOURNAL OF SOCIAL SCIENCE AND HUMANITIES RESEARCH  
( ISSN 2811-2466 )                                                                                                                              Obiora Peters, EMEKA Phd1*  

https://ijojournals.com/                                                                             Volume 08 || Issue 08 || August, 2025 || 

“DETERMINANTS OF INSURANCE UPTAKE IN RWANDA A CASE STUDY OF RADIANT INSURANCE COMPANY LIMITED (2020-2024)" 

 

 

Table 7: Coefficients 

Model Unstandardized 

Coefficients 

Standardized 

Coefficients 

t Sig. 

B Std. Error Beta 

1 

(Constant) 4.715 .369  12.776 .000 

Knowledge .327 .052 .443 .512 .01 

Skills .490 .045 .286 1.968 .000 

Behavior .300 .046 .387 2.184 .001 

Accessibility .336 .048 .400 .001 .001 

Source: SPSS Program V22   

a. Dependent Variable: Uptakes 

4.5 Discussion of Coefficient Results 

All the four independent variables of knowledge, skills, behavior and accessibility are found to have a 
positive and statistically significant effect on insurance uptake at Radiant Insurance Company in 
Rwanda based on the regression coefficients. Knowledge has been found to have a coefficient of (β = 
0.327,P = 0.01), which implies that the more the knowledge an individual acquires pertaining to 
insurance-the higher the chances are that he/she will uptake. It implies that clients who know how 
insurance operates, with its claims and other provisions are more likely to embrace it. This is 
substantiated by Lusardi and Mitchell (2017), which stressed that financial literacy enhances insurance 
decisions. Cohen (2023) also associated insurance literacy with duration of enrolment and satisfaction. 
In a theoretical perceptive, this outcome anchors on the Theory of Planned Behavior (TPB), where held 
in understanding increases the perceived behavioral control that intensifies intention to act. 

The unstandardized effect is the strongest in terms of skills (β = 0.490, P = 0.000), which indicates that 
the application of some practical competencies, including the calculation of premiums, the awareness of 
terms, or policy comparison, greatly favor the adoption of insurance. This is in line with the study 
conducted by Kiplagat and Ndungu (2021), which revealed that technical ability enhances the uptake of 
insurance among SMEs in Kenya. It also supports the claim of Gin and Yang (2009) with respect to the 
finding that does adjust education that boosts insurance adoption in households in rural settings. TPB is 
a contributing factor too since those who feel they can act competently are likely going to take a step 
toward enrollment in insurance coverage. 

The coefficient of behavior is (β= 0.300,P = 0.001), meaning that the practice of paying premiums, 
renewing the insurance policies, and frequently saving money to cover those soon to be paid premiums 
will have positive effects on the uptake. The relevance of this finding can be aligned with the findings of 
Rukundo et al. (2019) whose behavioral attributes such as saving differently and interest in insurance 
were ranked highly when it came to predicting the uptake in Uganda. Also, Zhang et al. (2020) 

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( ISSN 2811-2466 )                                                                                                                              Obiora Peters, EMEKA Phd1*  

https://ijojournals.com/                                                                             Volume 08 || Issue 08 || August, 2025 || 

“DETERMINANTS OF INSURANCE UPTAKE IN RWANDA A CASE STUDY OF RADIANT INSURANCE COMPANY LIMITED (2020-2024)" 

 

 

mentioned behavior as a mediator of the financial decision-making as well as its contribution to long-
lasting insurance engagement. TPB reinforces this once more in that behavior is based on attitudes and 
intentions formed as part of belief system and prior action. 

The Accessibility coefficient is(β= 0.336, P=0.001) with standard error of 0.048; the standardized Beta 
is 0.400. It implies that accessibility determines insurance uptake in a positive and statistically 
significant manner having an average statistical significance of 1 percent. What this implies in practice 
is that when it becomes easier to access the insurance services or avenues, such as locating branch 
offices, making it convenient to locate an insurance professional or simplifying online systems, the 
chances of the client availing insurance becomes very high. The implication of this finding is that 
accessibility of the insurance services is a key requirement in customer engagement and enrolment of 
policies. Existence such as distance, weak distribution channel or presence of agents may be a deterrent 
to those potential clients particularly the under-served neighborhood. The strategies to make services 
closer to the clients via mobile platform, expansion of the branch facilities or development of agent 
networks will thus be of benefit to Radiant Insurance Company. The finding is also in line with the 
Theory of Planned Behavior (TPB) that postulates that perceived behavioral control is strengthened 
using easier access, which makes an individual feel better able to perform an action (in the instance, take 
up insurance). Greater accessibility creates fewer barriers to the decision-making process, and thus the 
adoption of insurance is more probable. It also conforms with the findings of Turyamureba, Yawe & 
Oryema (2022) in Uganda; Imoseme & Chijuka (2024), Rukundo et al. (2019), as it is opposed to 
Kiplagat & Ndung u (2021) and Wasike (2019) who stated that accessibility had not increased 
enrolment even when it was enhanced, reporting that the motivating factors were suspect as it could be 
tied to a lack of trust in insurance companies and poor literacy, 

5.0 Conclusion and Recommendation 

5.1 Conclusion 

The analysis looked at the major determinants that impact on the adoption of insurance among the 
clients of radiant insurance company limited in Rwanda. Informed by Theory of Planned Behavior 
(TPB), it was found that there are significantly positive  impacts of the knowledge, skills, behavior, and 
accessibility towards insurance uptake. Of these, skills had the greatest unstandardized effect, and 
knowledge had the greatest standardized effect. The above findings point to the importance of 
informational and behavioral readiness in the decision to subscribe to insurance. It was also corroborated 
by the study that the perceptions of the clients on issues of affordability, accessibility, reliability and 
suitability of the source have different roles in determining uptake and that suitability is the most 
affected on group concerns. In total, the findings set the significance of targeted education, 
empowerment of skills, and change of attitude towards improving insurance penetration in the formal 
insurance sector in Rwanda. 

 

5.2 Recommendation 

Leaning on the result, it can be suggested that there are needs to be an increased literacy of the 
population on the issues of insurance by investing into sustained educational campaigns in terms of 
insurance knowledge and processes within the population to enhance the knowledge-based decision-

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( ISSN 2811-2466 )                                                                                                                              Obiora Peters, EMEKA Phd1*  

https://ijojournals.com/                                                                             Volume 08 || Issue 08 || August, 2025 || 

“DETERMINANTS OF INSURANCE UPTAKE IN RWANDA A CASE STUDY OF RADIANT INSURANCE COMPANY LIMITED (2020-2024)" 

 

 

making. The variations in suitability perceptions should be addressed by having insurance packages that 
are Customer-Centered to cater to unique needs, different life stages and income of various customers, 
regardless of differences in suitability perceptions. There should be workshops and digital tools in order 
to give the clients the skills of comparing the policies, computing the premiums and knowledge of the 
claims processes. Discounts on early renewal or loyal bonuses are some incentive schemes that can 
enhance the client to follow through insurance behavior therefore enjoying positive Insurance Behavior. 
Technology should be used to improve accessibility; and a positive attitude towards insurance followed 
by long term consumer trust can be achieved by having clear communication, simplified policy 
documents and quick claim settlements by Radiant Insurance. 

6.0 Statement of Competing Interests 

The authors have no competing interests 

7.0 list of Abbreviations 

ANOVA- Analysis of variance 

BNR - National Bank of Rwanda 

CBHI - Community-Based Health Insurance 

EAISA - East African Insurance Supervisors Association 

GDP -Gross Domestic Product 

GSMA - Global System for Mobile Communications Association 

OECD - Organisation for Economic Co-operation and Development 

RSSB - Rwanda Social Security Board 

SME - Small and Medium Enterprises 

SPSS - Statistical Package for the Social Sciences 

TPB  Theory of Planned Behavior 

 

 

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( ISSN 2811-2466 )                                                                                                                              Obiora Peters, EMEKA Phd1*  

https://ijojournals.com/                                                                             Volume 08 || Issue 08 || August, 2025 || 

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( ISSN 2811-2466 )                                                                                                                              Obiora Peters, EMEKA Phd1*  

https://ijojournals.com/                                                                             Volume 08 || Issue 08 || August, 2025 || 

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