Minister of Finance Sosten Gwengwe has emphasised the need for close collaboration between the government and players in the insurance industry to enhance awareness and promote saving culture among Malawians.
This, he said, will help enhance insurance penetration in the country. Insurance penetration rate is seen at 2.5 percent.
This came out during the Insurance Institute of Malawi (IIM)’s annual conference held in Mangochi over the weekend.
Gwengwe said the government intervention is crucial in various areas such as regulation through creation of a conducive environment that encourages innovation while ensuring protection of both insurers and consumers.
“We also need public-private collaborations to enhance accessibility and coverage, particularly in vulnerable sectors. Exploring avenues for tax benefits on premiums and investments aligning with long-term economic goals is another crucial area for consideration,” Gwengwe said.
IIM President Hastings Kapesa said through collaboration between the insurance industry and the financial services sector, the industry can create room for growth.
He said development of innovative insurance products coupled with favourable regulatory frameworks, will enable the sector to shield citizens from the shocks of economic instability.
“A higher penetration rate signifies that more individuals and businesses are protected against financial risks and uncertainties through insurance products and has positive impacts on the country’s economy.
“Overall, a higher insurance penetration rate can contribute to a more resilient and stable economy in Malawi by promoting risk management, savings, investment, business growth and financial security,” Kapesa said.
A recent Global Data ‘Malawi Insurance Industry – Key Trends and Opportunities to 2026’ report indicates that gross written premium of the Malawi insurance market reached K120.7 billion (about $150.5 million) in 2021.
The market is expected to achieve a compounded annual growth rate of more than 13 percent between 2021 and 2026.
