By CPA Delphin Nkusi
Rwanda’s mobility landscape has evolved faster than the insurance industry’s ability to measure risk. Today, motor insurance premiums are still determined mainly by vehicle type, category, and usage. It is a familiar structure that provides simplicity, but it treats all drivers in the same category as if they carry the same level of risk. In reality, road behaviour among motorists varies widely, and the current pricing framework neither rewards safe driving nor reflects individual exposure.
As Rwanda strengthens road safety enforcement and continues to expand its digital capabilities, the moment is right for the industry, led by the Rwanda Insurers Association, to consider a shift toward behaviour-based, data-driven motor insurance. This modern approach prices risk based on how people actually drive rather than the vehicle they happen to own.
A New Risk Landscape and a New Opportunity
Rwanda National Police has invested heavily in traffic monitoring and enforcement. Speed cameras now operate across major roads and intersections. Drones are increasingly used to monitor driving behaviour from above and detect dangerous patterns that would previously go unnoticed. The upcoming implementation of the demerit or loss-point system for driving licences will provide a fair and consistent way to assess each driver’s record.
These tools generate objective information about how drivers behave on the road. They reveal speeding trends, repeated violations, high-risk routes, night-time driving behaviour and other forms of risk-taking. Yet none of this information is currently used by insurers when determining motor premiums. This represents an opportunity for the industry to modernize. Rwanda has, for the first time, the essential building blocks required to shift from broad category-based pricing to a model built on real behaviour.
Behaviour-based insurance is increasingly common in markets such as South Africa, Europe and the United States. Rwanda has the advantage of adopting this model at a moment when our digital maturity is strong and when national traffic monitoring systems are already producing credible behavioural data.
How Behaviour-Based Insurance Could Work in Rwanda
A modern motor insurance model combines three reliable sources of information. The first is driving behaviour captured through telematics, either through smartphone sensors or small in-car devices. This includes speed consistency, braking patterns, phone usage during driving and route history. The second is enforcement information from Rwanda National Police, including speed camera violations, drone-captured behaviours and the driver’s loss-point record. The third is mobility insights available through telecommunications providers, which reflect driving frequency and peak-hour movement.
Together, these inputs create a simple risk score. Premiums would continue to respect the tariff structure but would include adjustments that reflect responsible or risky driving habits. Safe drivers would enjoy meaningful rewards such as discounts or lower deductibles. High-risk drivers would bear a fairer share of the premium cost. Importantly, this system does not require expensive hardware. With Rwanda’s high smartphone penetration, most data can be gathered through a mobile application and verified using national enforcement records.
Why This Matters for Insurers and the Country
For insurers, behaviour-based pricing creates more accurate underwriting and reduces claim frequencies as driving behaviour improves. Claims become easier to verify because telematics provide clear trip evidence. Loss ratios stabilize and insurers can compete on innovation rather than simply on price.
For clients, the model enhances fairness. A driver who consistently respects speed limits and maintains safe habits should not pay the same premium as another who repeatedly appears in violation records. Behaviour-based insurance restores this balance.
For Rwanda, the approach reinforces national road safety objectives. It complements enforcement, encourages responsible behaviour and helps reduce accidents, injuries and financial loss.
A Strategic Moment for the Rwanda Insurers Association
The Rwanda Insurers Association is well placed to champion this evolution. By coordinating with Rwanda National Police, engaging telecommunications partners and working closely with the regulator, the Association can guide the industry toward a more modern and transparent pricing framework. This shift would position insurers as proactive partners in national safety and innovation.
Rwanda now has the data, technology and policy environment required to build a fairer and more intelligent motor insurance system. The future of the industry will belong to those who price risk using real behaviour rather than assumptions. The opportunity is here, and the benefits are shared by everyone who uses Rwanda’s roads.
CPA Delphin Nkusi is a Financial Sector Risk and Assurance Expert. The views expressed here are his own and do not represent those of any institution or individual.
