Digital insurance to boost penetration

By Benadetta Chiwanda Mia:

The insurance industry expects a surge in penetration owing to the introduction of automated insurance systems.

This comes a year after the launch of the digital insurance system, marking the transition from manual and pre-printed motor vehicle insurance certificates from December 31 2024.

Currently, insurance penetration in Malawi stands at approximately 1.9 percent, a modest increase from 1.4 percent in 2018.

At a recent engagement with stakeholders, including traffic police officers and the media in Blantyre, Insurance Association of Malawi (IAM) Executive Secretary Charles Kuyokwa said the new system enhances accessibility.

“This initiative aligns with the government’s Malawi 2063 to digitise the economy, including its insurance sector,” Kuyokwa said.

Kuyokwa said transitioning to digital certificates will significantly curb the fraudulent activities prevalent in the motor insurance market, as digital verification renders these certificates tamper-proof.

“This will bring sanity in the industry,” she noted.

Kuyokwa has since advised motorists to visit their insurance providers to change their old certificates to the digital format before the deadline.

Road Traffic Inspector for the South-East Region Assistant Superintendent Jonathan Chitedze commended the system for enhancing efficiency in motor insurance verification.

“Currently, we verify insurance details through mobile devices rather than physically checking windscreens, which greatly simplifies the process,” Chitedze said.