Tentative figures on Malawi’s insurance industry performance in 2025 show that the sector has recorded a 28 percent growth.
Figures we have sourced indicate that gross premiums rose from K120.5 billion to K154.5 billion, driven by major projects, inflation-related sum insured revisions and Kwacha depreciation.
In an interview, Insurance Association of Malawi President Dorothy Chapeyama, who is also Reunion Insurance Company Limited Chief Executive Officer (CEO), said indications show that the industry registered significant growth despite final figures being subject to ongoing external audits.
She attributed the growth to insurers’ efforts in product innovation, digitalisation and service improvement.
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“The strong growth recorded by the general insurance sector alone is encouraging and reflects growing uptake of insurance [services] in the country, coupled with inflationary increases in value of insured assets,” Chapeyama said.
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However, Chapeyama acknowledged that liquidity and solvency pressures highlighted in the Reserve Bank of Malawi Financial Stability Report remain key challenges.
“These pressures are influenced by delayed premium remittances, slow reinsurance recoveries, rising operational costs and high claims ratios driven by increased accident cases, increased cost of spare parts and fraudulent claims,” she said.
Chapeyama said the industry was working with the regulator to strengthen risk management and enhance market discipline under the ongoing risk-based supervision framework.
She added that implementation of the new Insurance Act would improve cash inflow, translating into improved liquidity and solvency in the market.
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“The Act introduced important operational changes that require market adaptation. The strict premium payment rule provides that insurance contracts are valid only upon payment of premiums, essentially eliminating the common practice of offering insurance on credit,” she said.
Nico General Insurance Company CEO Donbell Mandala expressed satisfaction with the industry’s performance.
“The 28 percent growth demonstrates resilience and growing confidence in the insurance sector. With the new regulatory framework and improved market discipline, we are optimistic that 2026 will deliver even stronger results for both insurers and policyholders,” Mandala said
