Muscco, Kenya’s CIC form new insurance company
A new cooperative insurance company is in the offing after Kenyan insurance giant Cooperative Insurance Company (CIC) and Malawi Unions of Savings Credit and Cooperatives (Muscco) finalised a deal on a joint venture.
Both Musco and CIC are limited to owning 49 percent of shares in the new company with the remaining two percent to be owned by Malawian shareholders.
Speaking at a press briefing in Lilongwe, Muscco chief executive officer Sylvester Kadzola described the development as milestone in the history of cooperatives in the country, adding he was optimistic the new company will open doors for its customers by December.
He said the new firm will complete registration with the registrar of companies in two-week time and subsequently apply for Reserve Bank of Malawi (RBM) certification.
“The officials from CIC were here after we had signed a memorandum of understanding [ MoU] in Kenya a couple of months ago. We started the journey in 2010 when we first discussed the idea and we are glad that we are able to tap from the experience of CIC, which is Kenya’s second biggest insurance company and Africa’s largest cooperative insurance company,” said Kadzola.
He added that the country’s cooperatives have been calling for an insurance company to cater for their needs for a long time.
CIC group managing director Nelson Kuria said the cooperative insurance will bring difference to the local insurance industry, saying the solidarity spirit within the cooperative society demands that the company is “customer centric.”
“It’s exciting to be partnering with Muscco, we are doing the same in South Sudan, in Uganda partnering with an organisation equivalent to Muscco in Uganda. We are putting up footprints all over Africa. After the 2012 United Nations Day for cooperatives, cooperatives appealed for formations of cooperative insurance companies to protect their interests and reduce the risks,” said Kuria.
He said the new insurance company, apart from servicing the cooperatives will also have additional services for other insurance services users offering both general and life insurance.
He added that the two companies have conducted a feasibility study to ensure success of the venture, adding the company will conduct rigorous civic education of cooperatives to create understanding of insurance.
According to Muscco, the capitalisation of the company will see both firms investing to ensure the new companies raise amounts above the RBM minimum of K75 million ($198 000) for life insurance and K50 million ($132 000) for General insurance.
