Pension, insurance not given priority—RBM
Reserve Bank of Malawi (RBM) Governor Dalitso Kabambe has expressed concern over low priority given to pension and insurance in individuals and households’ decision-making.
The governor said this in a published statement on Friday ahead of the Pension and Insurance Awereness Week which starts today through to Saturday under the theme Pension and Insurance for All.
Kabambe said this is reflected in the low numbers of people with pensions at 304 000 only and low uptake of insurance products at 1.4 percent penetration.
“The consequences are that many people find it hard to live a better life after retirement and that when uninsured assets of people are caught up in problems, people find it hard to deal with such matters. The week is, therefore, meant to reflect on these matters,” he said.
Kabambe said the core objectives of the Pension and Insurance Awareness Week are twofold, namely to promote consciousness of pension among workers, employers and the general public with the ultimate objective of increasing the number of members in the national pension scheme and to promote awareness of insurance among Malawians to stimulate uptake of insurance products and services with an aim of increasing insurance penetration, expressed as a ratio of premiums to gross domestic product (GDP).”
Nico Life Insurance Company Limited, one of the pension fund managers, recently complained that some companies are yet to remit about K7.4 billion in pension contribution as of November 2017.
The firm’s chief executive officer Eric Chapola said they receive complaints and inquiries on administration of pension funds and some employees are suing companies over pension.
During the Pension and Insurance Awareness Week, RBM, in conjunction with the Insurance Association of Malawi, Life Insurance and Pension Association of Malawi, Insurance Brokers Association of Malawi, Malawi Congress of Trade Union and Employers Consultative Association of Malawi, will undertake various activities aimed at bringing awareness about pension and insurance.
The activities will include road shows and storming of selected markets in the cities of Blantyre, Lilongwe and Mzuzu, radio and television messages on pension and insurance, pension workshops for union leaders and insurance products exhibitions at various places in Blantyre, Lilongwe and Mzuzu.
