Nico General Insurance Company Limited, a subsidiary of listed Nico Holdings Limited, has said the Reserve Bank of Malawi (RBM) is biting the insurance industry with too many directives.
The insurance firm’s regional manager for Centre and North Master Mbale said this in reference to the recent RBM’s proposal to raise the minimum capital requirement for general insurance companies from K50 million to K750 million.
“With this, we will see a lot of mergers and acquisitions,” Mbale said at a stakeholders meeting on Friday in Mzuzu.
President of the Insurance Association of Malawi (IAM) Ian Kumwenda said in an interview they are meeting RBM officials this week to discuss the raise in minimum capital requirement.
He said if taken on board, most players in the insurance industry will wind up business.
“Shareholders will have to put in money for the company to meet the K750 million minimum requirement, failure to do, we will see mergers and others winding up, but we are hoping for something better after the meeting,” said Kumwenda.