Prime Insurance, Smea sign insurance MoU
Prime Insurance Company Limited and Small and Medium Enterprises Association (
) have signed a memorandum of understanding (MoU) that will help to restore small businesses to a secure trading environment.
“Prime Insurance understands that SMEs [small and medium enterprises] clients require simple, straightforward and cost-effective processes when purchasing insurance, so they can focus on their core businesses.
“That is the reason we are signing the memorandum of understanding with Smea so that we provide tailor-made insurance products in simple and cost- effective manner to its members to protect their productive assets and safeguard their profits,” said the insurance firm’s chief executive officer Albert Mbawala in Blantyre last week.
Experts say SMEs contributes substantially to the country’s economic development and have a direct effect on gross domestic product (GDP)—the broadest measure of a country’s economic performance.
In countries such as Japan and China, 60 percent of GDP comes from SMEs, in the USA that percentage goes up to 65 percent, signifying that if Malawi is to spur development, SMEs should not be ignored.
Mbawala said with the MoU in place, Prime Insurance will be insuring business assets, liabilities against third parties and loss of profit and the product will be availed to SMEs that own property, run a business and also keeps property for others.
Smea president James Chiutsi said when one has an insurance policy, the enterprise is covered against several risks such as theft, personal accident, injuries, legal liabilities and electrical appliances.
“Insurance is very vital, especially for SMEs. Larger companies with a lot of reserves can manage to recoup in times of disaster and losses while small enterprises can literally close shop,” he said.
