By Benadetta Chiwanda Mia:
Reserve Bank of Malawi (RBM) Deputy Governor Kisu Simwaka has hailed the country’s insurance industry for its role in providing safety nets to key sectors of the economy.
He said this at the Insurance Institute of Malawi (IIM) Annual Charter Dinner in Blantyre on Saturday.
The dinner, which brought together insurers and players from other sectors, was held under the theme ‘Transforming Malawi through Insurance Innovation, Inclusion, and Growth towards Malawi 2063’.
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In his address, Simwaka said amid economic bottlenecks Malawi has faced in recent years, the insurance sector had come in handy to provide cushions.
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“Insurance is not merely a financial instrument, it is a shield that safeguards individuals, businesses and communities from adverse effects of economic shocks.
“In times of crisis, it provides a safety net that allows us to recover and rebuild,” Simwaka said.
Simwaka noted that insurance penetration remained low, with less than 2 percent of the population accessing any kind of insurance.
He, however, said RBM was intensifying efforts to enhance insurance growth across various sectors through proactive measures, including implementing the recently passed Insurance Act.
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Simwaka highlighted that the new Act aimed to bolster governance and management within insurance institutions and provide enhanced supervision over premium payments, claims settlements.
He added that the Act would enable the authorities to regulate non-compliant entities.
IIM President Reuben Kamanga Kawelele called for innovative strategies to expand coverage and improve economic resilience.
He said efforts were being undertaken to make insurance more accessible, particularly in rural areas where language barriers exist, by tailoring communications in native languages.
