Insurance players told to advance awareness to raise penetration rate

Old Mutual Malawi Life Assurance Company Managing Director Roy Punungwe

Players in the insurance industry, have been challenged to become more innovative in raising awareness about the Importance of insurance and how it contributes to national development so as to raise the insurance penetration rate which is too low in the country.

Old Mutual Malawi Life Assurance Company Managing Director Roy Punungwe said this in Blantyre on 4 December, 2023 during the symbolic handover of a Seven Million Kwacha sponsorship to Insurance Institute of Malawi (IIM) for the hosting of series of insurance quiz competitions this month.

Punungwe said there is need for concerted efforts to raise the rate of penetration of Insurance in the country which currently stands at 2.5% and added that players in the industry need to be more innovative and intensify awareness campaign about insurance so that more Malawians should start insuring their properties and lives.

The Old Mutual (Malawi) Life Assurance Company Managing Director further said if the insurance penetration is raised in the country, there is a possibility that it may as well help the growth of the economy of the country, thereby contributing positively to the national development.

“So, 2.5% refers to insurance penetration, that means that when you look at the population, 2.5 percent of the population have insurance. That means there is a big grouping of the population that does not have the protection of the insurance. If you look at mature industries you will always want that penetration to grow up. It speaks to the larger issue of limited financial inclusion within the economy.

“For economy to really grow, there has to be inclusive growth coming through and that also speaks to says the financial inclusion needs to be very aggressive. So, I think it’s very important as players in the industry, we need to work with all key stakeholders to improve the insurance penetration ultimately improving financial inclusion which translates to inclusive growth within the economy,” said Punungwe.

Speaking on the 7 million kwacha sponsorship package, Punungwe said the company being one insurance player, values a lot the insurance quiz competition which he said will bring together key players and stakeholders in the insurance sector.

He added that the quiz will not only provide a space for knowledge sharing, but also networking, and collaboration which he said is critical for the continued growth of the Insurance sector.

While describing the 7 million kwacha sponsorship as immeasurable, IIM president Hastings Kapesa, said the package is not only enhancing the educational landscape for insurance professionals but also promotes a culture of continuous learning and innovation within the insurance fraternity.

The IIM president continued by saying that the insurance quiz  competition will as well elevate the insurance industry standards, ultimately benefiting their customers through improved services and a heightened understanding of insurance principles.

Kapesa further said the significant contribution underscores Old Mutual’s commitment to fostering knowledge and excellence within the insurance sector.

According to Kapesa, the competition’s impact extends beyond the confines of the institute, reaching far and wide into the very fabric of the insurance industry and its stakeholders.

“Today marks a historic occasion in the books of IIM and the insurance industry, as we gratefully receive a generous sponsorship of K7million from Old Mutual Malawi designated for our upcoming Insurance Quiz Competition. For your information Old Mutual has supported Quiz for quite a long time and I for one I am the beneficially having participated in several quiz competitions that were sponsored by Old Mutual.

“The sponsorship not only supports an academic endeavour but symbolizes a partnership that actively shapes the future of our industry. With Old Mutual’s support, we are poised to create a reservoir of knowledge that will not only fortify our current professionals but also inspire the next generation of insurance leaders,” reacted Kapesa to the sponsorship.

The quiz competition which will be done in four series, will start this coming Friday on 8th to 20th December, 2023 and it will be held under the theme; “Building Resilience Through Insurance in Times of Economic Turbulences”.