Rwanda’s motor insurance market is preparing to implement new tariffs for compulsory third-party motor insurance. The Rwanda Insurers Association (ASSAR) has announced a revision of Motor Third-Party Insurance tariffs, which will take effect on October 1, 2026. The association notably attributes the revision to the rising frequency and cost of claims, as well as increasing expenses related to vehicle repairs, medical care and spare parts.
Revision announced on September 9
In a communication dated September 9, 2026, ASSAR informed the public and other stakeholders of a revision to Motor Third-Party Insurance tariffs.
According to the association, the decision follows a review of the current situation in the motor insurance market and the factors affecting the sustainability of this line of business.
The new tariffs will take effect on October 1, 2026.
Rising claims costs highlighted
ASSAR cited several factors behind the tariff revision.
The first concerns the high claims experience of the Motor Third-Party portfolio, which the association links to increases in both the frequency and cost of claims.
ASSAR also highlighted exposure to potentially unlimited liability, particularly in cases involving bodily injury and significant compensation awards.
According to the association, these factors are increasing the liabilities that insurers may face in this segment.
Vehicle repairs, medical care and spare parts
Inflation and the rising cost of services required to settle claims are another factor cited by ASSAR.
The association specifically points to higher costs related to:
- vehicle repairs;
- medical treatment and healthcare;
- spare parts;
- and, more generally, expenses associated with claims.
According to ASSAR, these developments have significantly increased the overall cost of providing Motor Third-Party Insurance coverage.
Preserving insurers’ ability to settle claims
Through this revision, ASSAR says it aims to ensure the financial sustainability of Motor Third-Party Insurance and maintain pricing that reflects the level of risk assumed.
The stated objective is also to preserve the system’s ability to meet legitimate claims while maintaining the protection provided to road users and third parties.
The revision therefore concerns the pricing of Motor Third-Party Insurance coverage and, according to the association, reflects changes in the actual cost of the risks borne by insurers.
New tariffs effective October 1
The new Motor Third-Party Insurance tariffs will apply in Rwanda from October 1, 2026.
However, the ASSAR announcement reviewed does not specify the amounts of the new premiums or how they will change according to vehicle category.
These details should therefore be distinguished from the general tariff revision announcement, which primarily sets out the reasons behind the decision and its effective date.
250Assurances / insurance – Insurance news platform in RWANDA and Africa – September 25, 2026
