Competitive strategies adopted by insurance companies in Rwanda
This paper was a survey that sought to establish the competitive forces in the Rwandan market that affected the manner in which insurance business was conducted. It also sought to find out the competitive strategies the insurance companies in Rwanda adopted in face of the various forces of competition. The research was a survey that was to include all the insurance companies in Rwanda. Primary data was to be used to conduct the research. According to the results the most felt forces were; Price wars with competitors, High costs of customers switching from a competitor to your companies, Wider branch networks of competitors, with mean scores 3.50, 3.00, and 2.50, and the least felt forces were; application of e-commerce, Competitive lending from Microfinance institutions, Poaching of staff, with the mean scores; 1.25, 1.50, and1.50, respectively. In response to the strategies the most used strategies were; Improving product quality, Expenditure in ICT, Widening the current network of branches, with mean scores; 4.50, 4.25 and, 3.75. Strategies that were least used are; Reducing product range/items ,raising prices ,efforts towards Merger and Acquisition laying-off of employees with the mean scores; of 1.75, 1.75, and 2.25, respectively. Study recommends that the insurance industry in Rwanda should be reorganized to allow for more competition. In a competitive market the most efficient and productive companies survive, while poor and inefficient firms get naturally weeded out. The government should reduce its presence in the insurance industry to allow for more competition from within and without the country. Mechanisms should be put in place to make the insurance industry more aggressive. An aggressive business environment improves quality of service while driving down prices for the good of the consumers of insurance products.