Malawi’s insurance penetration lowest in the region says RBM

BY HENRY MCHAZIME 17:24:21 - 29 September 2008

Reserve Bank of Malawi (RBM) Deputy Governor Mary Nkosi says the country’s insurance penetration is very low despite the fact that Malawi’s economy has been on the rise.Nkosi who is also Deputy Registrar of Insurance said this on Friday during the official opening of Insurance Institute of Malawi (IIM) annual conference held under the theme ‘Thriving on change, go for gold’.She said although the economy registered an impressive growth rate of 8.6 percent in 2007 due to good and sound economic management, insurance penetration ratio was very low.“The rosy picture of how our economy has performed over the past three years stands to be dented when we have low insurance penetration ratios. In 2005 the insurance penetration ratio was 2 percent, 2.2 percent in 2006 and 2007 2.3 percent,” said Nkosi.She added that the ratios entail that few Malawians have access to insurance products and challenged the insurance industry to seek proper solutions to address the challenge.“Let us try to find solutions with a view of ensuring that more Malawian should access insurance products particularly in the present times when the prevalent macroeconomic environment is quite favourable,” said Nkosi. On economic prospects for 2008 Nkosi said the economy is expected to grow by 8.7 percent with the expectation that the direction which the economy will take thereafter will have a significant influence on the future performances of all business entities and insurance companies.In his remarks IIM outgoing president Master Mbale who is also Assistant General Manager for Nico General Insurance said the theme for the conference was selected to provide necessary skills to participants on how to deal with changes affecting the industry. Around 100 participants attended the conference which had local presenters who tackled several challenges facing insurance business ranging from fraud to money laundering.

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