Challenges of Strategy Implementation in Private Insurance Sector in Rwanda

Abstract

Any business wishing to grow must develop a strategy and implement it, and thereby see growth. However, strategy implementation is fraught with challenges. Accordingly, the research analyzed the challenges facing strategy implementation in private insurance in Rwanda. The research had two objectives: establish the challenges facing Rwandan private Insurance sector in strategy Implementation and establish how those challenges have been addressed. This research utilized a cross-sectional survey to identify and describe the challenges of strategy implementation in private insurance sector in Rwanda. The targeted population was the 12 private insurance companies licensed by National Bank of Rwanda (BNR), the regulator of financial services. The respondents were 12 managers from the company headquarters located in Kigali. The respondents were interviewed by phone and Microsoft teams calls due to Covid-19 restrictions. Quantitative data collected was analyzed through descriptive statistical methods and presented through tables and texts. The study established that challenges of strategy implementation in Rwandan private insurers were ineffective communication of the strategy, most of the staff and management in the Insurance companies in Rwanda were resisting to change, demonstrated skills gap and low level of professionalism, and that most strategy implementation processes were under funded. However, the study also established how Private insurers in Rwanda have addressed those challenges by setting up the minimum rates to motor insurance and planning to do the same in non-motor insurance to get enough funds, investing in capacity building to breach knowledge gaps and embrace digitalization of services. Accordingly, in the light of these challenges, the study recommends scaling up professional levels, adoption of technical pricing, digitalizing products and services and products diversification to help in strategy implementation and enhance performance of private insurance companies in Rwanda.