Insurance Association envisions increased Insurance penetration with DMVIC
The Insurance Association of Malawi (IAM) says it expects an increase in insurance penetration as the country fully migrates to a digital motor insurance system by January 12025.
During the launch of this year’s Insurance Awareness Week some months ago, the Reserve Bank of Malawi (RBM) expressed concern over the continued low uptake of insurance services in the country as statistics and research carried out by various institutions showed the insurance penetration ratio was at 1.9 percent as of December 2023.
But during an interface session to brief police traffic officers and the media in the southern region about the new system in Blantyre on Tuesday, IAM Executive Secretary, Dharles Kasonda-Kuyokwa was optimistic that apart from simplifying life, the digitalized system will help increase the numbers.
“We believe that our numbers will increase because people will not travel to get the services but access them online. Even those in the rural areas will not come to urban areas to get the service. So, numbers in terms of penetration will increase.”
“We would like to ask the public to go and change their insurance certificates if they are still using the old ones, and at the same time we ask them to embrace the new system which is going to help the insurance companies and the public in terms of efficiency,” said Kuyokwa.
Police Regional Traffic Inspector responsible for the South East, Assistant Superintendent Jonathan Chitedze said the new system is vital and will ease their work.
“I am urging the public to comply with the new technologies as also required by the Malawi 2063 agenda,” said Chitedze.
The General insurance companies will cease issuing pre-printed certificates and fully migrate to Digital Motor Vehicle Insurance Certificates (DMVIC) by December 31 this year.
Among other benefits, DMVIC will help the law enforcers to be able to trace stolen and hit-and-run vehicles.
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