Insurance industry players and commentators have said the sector has vast potential for growth as the local economy continues offering opportunities.
This comes as a Global Data report, titled ‘Malawi Insurance Industry— Key Trends and Opportunities’, shows that the local insurance sector would grow to 13 percent by 2026.
According to the report, gross written premium of the Malawi insurance market was K120.7 billion (about $150.5 million) in 2021.
It further indicates that the market is expected to achieve a compounded annual growth rate of more than 13 percent between 2021 and 2026.
However, the local industry has failed to grow significantly in the last five years, registering a meagre 1.1 percentage point rise to 2.5 percent in 2022 from 1.4 percent in 2018.
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In an interview,
Insurance Institute of Malawi (IIM) immediate past president Hastings Kapesa said insurance penetration has remained low mainly due to lack of awareness.
He said most Malawians take insurance as a secondary need and is not included in school curriculums which has made it less popular among the masses.
“It is our prayer that individuals and companies should embrace insurance.
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“If the economic challenges being experienced are anything to go by, there is a chance that the sector can grow even beyond 13 percent by 2026,” Kapesa said.
Economist Betchani Tchereni said industry players should consider diversity if the mark is to be attained.
Minister of Finance Sosten Gwengwe said the government’s intervention is crucial in various areas, such as regulation to create a conducive environment.
“Collaborating with the insurance industry to enhance public awareness about insurance benefits is paramount.
“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.
