Reserve Bank of Malawi (RBM) says it is working on a pricing model for general insurers with the belief that the effort can complement insurers in addressing the issue of pricing.
Director of pension and insurance supervision in the office of the Registrar of Financial Institution at the bank, Noel Mkulichi, said this on the sidelines of the Britam Insurance Company Limited official launch dinner held on Friday in Blantyre.
He said that in the current trading environment, pricing should actuarially be determined so as to ensure scientifically resolute premium rates.
“Certainly, our pricing should actuarially be determined to ensure scientifically resolute premium rates, as this would minimise the serious malpractice of undercutting in the market,” Mkulichi said.
He disclosed that the registrar’s office is currently in the process of revising minimum capital requirements for insurance and reinsurance companies, which is currently at K50 million.
On his part, president of the Insurance Association of Malawi (IAM), Grant Mwenechanya, hailed the revision of the minimum capital requirements for the insurance and reinsurance companies, saying it will help increase capacity of the sector in its dealings.