Farmers and small-and-medium enterprises (SMEs) could get a life-line as far as safeguarding their businesses against avoidable losses is concerned, thanks to new insurance products unveiled on the market.

The products are aimed at supporting "these crucial economic stakeholders in case they suffer losses or accidents,” according to Pauline Wanjohi, the chief executive officer of UAP Insurance Rwanda.

Wanjohi said the products will provide comprehensive cover for SMEs and farming ventures to further augment efforts aimed at ensuring financial inclusion for all.

Most local SMEs and farmers do not insure their businesses, arguing it is a waste of money.

Wanjohi said, under UAP Icyashara policy, the firm would provide SMEs cover against loss or damage to property caused by fire, burglary, terrorism and accidental damage to property. She added that the agro-insurance products target both crops and livestock against drought, excessive rainfall, hailstorm, flooding, frost damage, fire , as well as pests and diseases.

Wanjohi said they would focus on cereals like wheat, barley, and maize, as well as coffee, tobacco, horticultural crops like cut flowers; greenhouses and irrigation equipment.

"The insurance policy for crops is based on value of inputs or pre-agreed market value of harvested crop,” Wanjohi explained.

Jonathan Gatera, the director general for financial stability at the National Bank of Rwanda, lauded the insurer’s move to venture into agro-insurance, noting that it will contribute greatly to the growth of the sector.

He, however, advised the firm and other insurance companies to carry out extensive sensitisation among farmers and entrepreneurs on how insurance cover can safeguard their enterprises.

"These products need to be explained to the beneficiaries. This can be done through the financial literacy campaign that we are undertaking and we are ready to work with insurers to ensure people are aware of these services,” he said.

Rwanda’s insurance sector is still small, with only 1.6 per cent of the estimated 12 million people in the country insured, according to the central bank. Gatera said insurers need to introduce more products to increase penetration levels in the country.

Fire outbreaks have over the past few months destroyed business worth billions of francs across the country, while farmers are always helpless whenever there are prolonged rains or drought.