Advertisement
Business

Insurance premiums rocket by 25 percent

Advertisement

Malawians are expected to cough more Kwachas from their pockets as the insurance premiums are up by 25 percent from October 1,2022.

Insurance Association of Malawi President Abdul Mageed Dyton confirmed the adjustment in an interview.

According to Dyton, the rise of the premiums is due to the fall of the Kwacha against major trading currencies such as the dollar.

Advertisement

“This has had multiple effects on the economy leading to rise in prices of various commodities. Coincidentally, the devaluation has also affected value of items of properties insured,” he said.

According to Dyton, the culmination of after effects of Covid pandemic and Russo- Ukrainian War has had an adverse effect on global prices.

Meanwhile, one of the players in the industry, United General Insurance, has already written its clients informing them of the adjustments.

Advertisement

According to a notice the insurance company has released, the value of most properties has increased with a minimum of 25 percent.

“It is against that background that we implore you to immediately adjust upwards your property value to align with the current prices,” reads part of the notice.

According to the notice, the revision will attract additional premium which shall be calculated as pro rata basis to the export of the pricing.

Business Analyst Alick Nyasulu rated the situation as not surprising since insurance premiums are inflation indexed.

Facebook Notice for EU! You need to login to view and post FB Comments!
Advertisement
Tags
Show More
Advertisement

Related Articles

Back to top button
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker