Liability Insurance and Performance of Insurance Companies in Rwanda: A Case of Sonarwa General Insurance Company Ltd
DOI:
https://doi.org/10.53819/81018102t30144Abstract
In Rwanda, insurance companies have introduced liability insurance as a popular product, but the increasing number of fraudulent claims and legal proceedings disrupt the sector's operations and overall performance. This study, conducted on liability insurance and the performance of insurance companies in Rwanda with a focus on SONARWA General Insurance Company Ltd. This study employed a mixed research approach, incorporating both quantitative and qualitative methods conducted among 90 employees of SONARWA GI recruited using a stratified sampling method combined with a purposive sampling. Obtained data was processed and analyzed using SPSS version 21. Descriptive statistics was used to get background information of the study population, and bivariate and multivariate analysis was used to evaluate the liability insurance on performance of GI. In the first set of data, respondents generally agreed on the challenges in liability insurance claims, with a mean score of 4.3470 and low variation. They perceived slightly more challenges in lawsuits (mean 4.3516), but still with low variation, suggesting moderate consensus. For knowledge among insured, perceptions varied more (mean 4.0868) with some significant differences in how respondents understood liability insurance challenges. The performance of SONARWA was considered as the way following: "Share Market" has moderate ratings (mean 3.808) and diverse opinions (high variation). "Profits" are positively perceived (mean 4.442) with strong consensus (low variation). "Meeting Stakeholder Needs" is highly rated (mean 4.479) with minimal variation, showing strong agreement among respondents. The study indicates that respondents generally have a collective understanding of challenges in liability insurance claims, with minimal variation. While they perceive slightly more challenges in lawsuits, there is still moderate consensus. However, perceptions about knowledge among insured vary significantly. Regarding SONARWA General Insurance, their performance in the "Share Market" receives moderate ratings with diverse opinions, while "Profits" are positively perceived with strong consensus. The company excels in "Meeting Stakeholder Needs," with a highly positive and widely agreed-upon perception.
Keywords: Liablity Insurance, Performance, Insurance Companies, Rwanda, Sonarwa General Insurance Company Ltd
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