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

Abstract

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.