An Information Communication Technology (ICT) expert, Mathews Mtumbuka, has said ICT can be used as a tool to accelerate insurance penetration. Out of every 100 Malawians, only three have access to insurance products and services.
In a paper he presented during the 2016 Insurance Institute of Malawi Annual Conference, titled Embracing Digital Transformation in the Insurance Sector: The Time is Now,’ Mtumbuka, suggested that insurers could use new technologies, including social media, to raise awareness on available insurance products and in the process boost the number of people with access to insurance services.
Motor vehicle insurance, which is mandatory, is the only insurance product which is highly patronised on the market.
“We need to make sure that as many Malawians as possible are aware of what insurance does as well as its benefits. You will find that most people are very busy to check on when their insurance policy is expiring. Most of them realise this when they are caught by the road traffic police.
“But constant reminders could help the insuring public be aware of when they are supposed to renew their policies,” said Mtumbuka.
He added that simplifying the process of buying insurance policies to allow Malawians to buy the policies using mobile phones in the comfort of their homes could also help boost the numbers of people accessing insurance.
Mtumbuka further underscored the need for the insurance companies to be on the lookout for cyber threats, adding that putting in place systems to protect themselves from such threats could help.