Most Malawians not aware of insurance—Report

Despite insurance being an effective tool to mitigate risks, many Malawians are not aware of insurance products being offered by insurance companies, according to the Financial Strategy for Financial Inclusion 2016-2020.

The strategy has emphasised on the need for players in the sector to increase awareness to make insurance available to Malawians as one way of deepening financial inclusion.

“Insurance is an effective tool to mitigate risk, however, in Malawi the opportunity is limited given the low disposable incomes. There is also very low awareness of insurance among Malawians,” reads in part of the report.

The report also indicates that while a majority may not be able to afford insurance, they still experience a myriad of risks and need to have access to effective risk mitigation tools.

Agreeing with the report findings, member of the Insurance Association of Malawi, who is also chief executive officer for Prime Insurance company, Albert Mbawala, said most Malawians, including those who are well educated, think insurance is just a waste of money.

“Most Malawians insure their vehicles because it is a must but the truth of the matter is that a lot of people regard insurance as not being important. As insurance companies, we find it difficult to take our messages to rural areas and it could have been good if government came in to help in creating awareness regarding insurance,” said Mbawala.

Mbawala said despite insurance being important it is strange that even government does not insure its property.

“Government must take a leading role on matters of insurance and it must even be included in the curriculum so that Malawians are even aware of insurance at a tender age,” said Mbawala.

An economist at Catholic University, Gilbert Kachamba, concurred with the report findings saying that awareness on insurance issues needed to be upscaled.