As published on times.mw on January 23rd, 2023
Local insurance broker, Minet Malawi, has said the insurance industry remained volatile during the greater part of 2022 despite having a sound regulatory framework in place.
The firm says it is, however, upbeat that 2023 and beyond will be promising for the sector.
In a statement, Minet Malawi Managing Director Delvin Khongono said weather-related shocks, which caused extensive damage to property and infrastructure, coupled with other structural challenges facing the economy, greatly affected the industry.
“It [2022] was a year of cheers and tears for insurers in particular and the insuring public in general. [But] one major event that stood out and caused extensive damage to property and infrastructure was floods,” Khongono said.
He also lamented low insurance penetration in the country; seen at about 2.3 percent, a figure he rated a minimal.
“This entails that many people in the country are yet to embrace the concept of insurance. Many people rely on informal insurance intermediation and risk mitigation tools,” he said.
Amid the challenges, Khongono said there were major regulatory and legislative reforms during the year under review, which, he said, are essential to propel growth of the insurance sector.
In the year, practitioners also lobbied authorities to introduce minimum premium rate tariff and cash and carry system.
Once introduced, the changes will modernise and give service providers a stronger liquidity position.
Another major highlight for the year, according to Khongono, was the passing of the Pension Bill 2022, which is aimed at repealing the old Pension Act of 2010 once assented to.
Some key changes of the Act include; reduction of waiting period for members out of employment from six to three months in case of unemployment.
Established in 1947 as JH Minet, the firm, formally known as Aon, has over the years become Africa’s trusted risk adviser.
