Speaking during an annual dinner of the Insurance Institute of Malawi at Mt Soche in Blantyre, Dr Chilima said the calculated risks that the industry takes plays an important role in enhancing internal cash flow and creating large amount of access thereby contributing to economic growth.
Dr Chilima said, at a large scale, insurance companies, if managed well help in mobilizing saving, lowering the cost of capital and improving risk management and liquidity.
Vice President Chilima added that insurance companies, together with mutual and pension funds, have a potential of being major players in national economic development with their broader scope beyond the trading and speculative notion of collecting premiums and underwriting claims with the expectation that a positive balance will accrue.
“Innovative arrangements in both general insurance and long term assurance business have so far confirmed that it is possible to increase access to improving the wellbeing of our people using insurance facilities,” said Dr Chilima.
Dr Chilima noted that the insurance companies have the potential of helping the country achieve its Sustainable Development Goals through reducing vulnerability and uncertainty with devised packages that will allow more Malawians gain access to basic services in a sustainable manner.
The Incoming President for Insurance Institute of Malawi Maclonnes Mwase said the industry will continue to offer best insurance services to serve the general public and contribute towards the growth of the economy.
Mwase said the dedication of all players in the insurance sector has been the reason why there has been tremendous progress and they will continue to take up action that will ensure the success of the industry.
“As the incoming president, let me say that I will discharge my duties with maximum dedication to promote professionalism in the industry and promote education and training. The insurance industry is vibrant and we aim to deliver in our sector,” said Mwase.
According to the Reserve Bank of Malawi, the Insurance sector in the country has a low penetration of 1.4 percent compared to other countries like South Africa with an insurance penetration of 16.9%, Namibia at 6.7 percent and United Kingdom 10.5 percent.
Chilima (L) hands over the award to Maideni
During the Annual Dinners, students were awarded in their respective categories with Best Deserving Student Award going to Steve Maideni of Old Mutual.