Deputy Minister of Finance Cornelius Mwalwanda has urged insurers to widen their insurance cover to more Malawians, especially those in the rural areas working in the agricultural sector.
Speaking during the Insurance Institute of Malawi (IIM) Annual Charter Dinner held in Blantyre on Saturday, Mwalwanda said, currently, insurance companies only concentrate on the few people in the urban areas.
“The penetration rate, at three percent, is still very, very low. As government, we feel this is not good for the country. The agricultural sector and housing sector is growing, but few are insured in these sectors,” he said.
He added that there is a great advantage to the country if more people get insurance cover.
“Proceeds from the insurance are reinvested in the economy. For instance, it is money from pensions that developed countries use in constructing high- rising buildings in the cities, roads and other investments,” he said.
In his speech, new IIM president Lawrence Mtambalika said his team has put in place a strategy aimed at widening insurance cover in the country.
Underlining that most Malawians insurer vehicles because it is mandatory, Mtambalika said they will roll out a programme of civic educating masses on the need to insurer their lives and properties not just vehicles.
He argued that the slow rate of insurance penetration in the country could be a result of failure by most Malawians to appreciate the importance of insurance cover.
Mtambalika added that IIM will also see to it that it builds its own premises for its insurance college.