Low access to insurance services a big challenge.

As published by the Nation Malawi Newspaper on December 6th 2019

Minet Malawi Insurance Brokers’ general manager Lester Cinyang’anya has urged insurance practitioners to come up with solutions to challenges the insurance industry faces.

He said this last week, in Lilongwe during the Insurance Institute Lilongwe Chapter Annual Dinner and Dance. Chinyang’anya cited low insurance penetration at 1.3 percent, which results in low access to insurance services. “As an industry, we need to come up with ways of reducing or eliminating these challenges. If we cannot come up with answers to the challenges, let us learn from our neigbours”, he said.

Chinyang’anya said many people in rural areas do not have access to insurance services due to the absence of a national insurance policy framework to enable insurance firms to extend their services to the rural people. He also noted low use of insurance by government as a risk management tool. “When an incident happens, government is exposed to irrecoverable losses”, said Chinyang’anya, citing the recent spate of fires that have damaged government schools and markets.

Malawi has the lowest insurance penetration in the Sub-Saharan Africa.