The establishment of the cooperative insurance firm is on track after major shareholders Malawi Unions Savings and Credit Cooperatives (Muscco) and Kenya’s Cooperative Insurance Company (CIC) obtained registration from the Registrar General’s office.
Muscco and the Kenyan cooperative insurance giant CIC announced last month they will jointly run the new company through ownership of 49 percent of shares in the new company.
Speaking in an interview, Muscco chief executive officer Sylvester Kadzola confirmed that the firm, which is to offer both life insurance and general insurance, will now apply for licensing with the Reserve Bank of Malawi (RBM) after raising the required amount of capital.
He revealed that the Registrar General’s office approved the certification of the company last week saying what remains is the company to be licensed by the central bank before opening doors for first customers.
“We have managed to raise K125 million as part of the capitalisation, which is the required minimum by RBM. As we previously indicated, we will be operating two companies offering life insurance and general Insurance and we will now send all the necessary information to RBM including the registration certificate from the registrar of companies for the process of licensing by the bank,” said Kadzola.
Previously, Muscco indicated the two companies will invest minimum of K75 million for life insurance portfolio and K50 million for general insurance portfolio.
Kadzola was optimistic that the company will be able to start operations in November once RBM approves the licensing application as previously announced.
