com The Contribution of Life Insurance Companies to The Gross Domestic Product in Rwanda. A Case of SORAS-VIE LTD (2010 ???? 2017)

Abstract

The study investigates the contribution of life insurance companies (LIC) to the gross domestic product (GDP) in Rwanda, case study of SORAS-VIE Ltd from 2010 to 2017. Specifically, investigate the level of investments within the LIC, examine the factors influencing the GDP, and examine the significant relationship between investment of life insurance business and the GDP in Rwanda. Descriptive research design, Pearson correlation and multiple linear regression analysis were used to investigate the extent of the investment, cost of sales, other income, and the gross profit to the GDP. Most of the existing researches concentrated on low penetration and a small number of life insurance in Rwanda. This study has a look at LIC and the contribution they play to the GDP of Rwanda. The findings, show that the investment, cost of sales, gross profit were statistically significant and had positive contribution at 5 %, while other income had insignificant contribution on the GDP of the country. Therefore, the coefficient of determination, shows that the variation on GDP was explained by life insurances about 99.8% which was a good indicator of the higher contribution of Rwandan LIC from 2010 to 2017. It was recommended that investment, income generated should be re-invested into the Rwandan economy to enhance long run economic growth and development. Government of Rwanda under regulator organ (BNR) should keep on motivating the LIC through their policies and those LIC should try to increase the awareness of their products and services to the public.