Reserve Bank of Malawi (RBM) Governor Wilson Banda has expressed concern over low insurance penetration which is at 2 percent currently, according to statistics.

Banda said this during the Insurance Institute of Malawi (IIM) Chartered Dinner and Dance held at Mount Soche Hotel in Blantyre on Saturday which saw new President Reuben Kamanga Kawelele taking over the mantle of leadership from Hastings Kapesa.

“The Insurance institutions have been in the country for many years. For example Old Mutual has been in the country for more that 70 years and yet the penetration is very low.2 percents its pathetic,” said Banda.

Banda also hinted that RBM as the regulator it intends to review the Insurance act, saying the move will play a very pivotal role in increasing the insurance penetration in the country.

“We have an Insurance Act which has been there for many years, given the revolving nature of things on the ground certain things in the act have become archaic so we need to go back and take a look at the act just to make sure that it is relevant and it answers to some of the challenges we are seeing on the ground,” said Banda.

On his part Kawelele admitted that the Insurance sector is facing some hiccups when it comes to penetration.

On this Kawelele said his administration will work on coming up with a research centre where the Institution can gather data on the Insurance penetration and tabulate it.

“As you have heard that most of us are saying the Insurance penetration is at 2 percent but we don’t have specific data that measure the said 2 percent so as new President of IIM i will make sure that we have a research centre,” said Kawele.

The charter dinner also saw some students who are employees of various insurance companies in the country being awarded after successfully completing their studies.