Insurance companies in Malawi have been urged to expand their horizon and compete in other sectors rather than the conventional ones which include motor cover.
This was said during a two day agriculture insurance training organised by the Insurance Institute of Malawi (IIM).
The training was facilitated by Afro-Asian Reinsurance Brokers Limited.
Insurance Association of Malawi president, Grant Mwenechanya, said there are a lot of untapped opportunities in the agriculture sector.
He said Malawi relies on agriculture for its economy hence it is important that farmers and crops are protected from natural disasters.
“Malawi is an agriculture country and the sector contributes about 80 percent for its export earnings
“However, very few insurance companies deal with agriculture products, but there is a lot of space in the sector which can provide growth to the insurance business,” Mwenechanya said.
IIM Vice President, Maclonex Mwase, said most insurance companies do not have an in depth understanding of how to cover the agriculture sector.
He said through the training, expectations are high that insurance companies will now start to offering agriculture insurance cover.
“There are a lot of opportunities in the agriculture sector, but companies are not conversant on how to handle the sector in terms of losses, claim payments and management, damage assessment among others,” Mwase said.
He said the institute will continue disseminating knowledge to the members and ensure that all members are well trained and have a better understanding of the products and also the market practices.
Afro Asian director Southern African Markets, Agripah Marangwanda, said countries like Zimbabwe have succeeded in agriculture production because of agriculture insurance.
He said it is important that the government should also support the sector to make sure that are well covered during disasters.
“If Malawi could do the same it means the farmers will be able to produce positively for both crop and animal farming.
“The insurance cover also helps farmers to access loans from banks as the cover acts as collateral,” he said.
In the picture above, Mwase (left) presents a certificate to one of the participants
By Caroline Kandiero - The Daily Times