Minet expands to reinsurance

As published by the Daily Times on April 20, 2021

One of the country’s insurance brokers, Minet – formerly Aon – has extended its services to reinsurance, a move which is aimed at expanding its operation base.

Minet Managing Director Delvin Khongono made the announcement in a statement after being accorded a composite insurance license by Reserve Bank of Malawi.

It becomes the first insurance broking company to be awarded the licence in Malawi. Khongono rated the move as (a) great achievement. “This in essence means that Minet is able to offer both retail and reinsurance services under one roof. We are the only insurance broker in the market to offer general insurance, life assurance, pension services and reinsurance under one banner”, Khongono said.

He said the move entails Minet will continue to contribute significantly towards growth of the local insurance sector. At about 2.1 percent, (the) insurance penetration rate remains among the lowest in the region. However, Khongono said players in the sector have potential to help grow the penetration rate and the sector’s contribution to the local economy. He said Minet is working tirelessly in contributing towards bridging the gap.

Under the new structure, (the) Minet reinsurance unit will help local insurers access specialist reinsurance markets such as the Lloyds of London. “Local reinsurers will be able to reinsure risks outside the country, which is turn brings the needed foreign exchange into the country. We see insurance companies venturing into those untapped sectors with the assurance that Minet finds reinsurance market for them”, he said.

Minet, formerly Aon, established its office in 1953 as Hogg Robinson & Capel Cure Nyasaland Limited. It is the oldest and largest insurance broking company in Malawi.

For some time, (the) insurance penetration rate remained low due to lack of reinsurance security to support risky sectors such as agriculture, mining and fishing, which have the highest economic activities, yet they are under-insured.