Insurance sector legislation in urgent need of updating – PM

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Insurance sector legislation in urgent need of updating – PM

2:41 CAT | 17 Mar 2023

FILE PHOTO - For illustration purposes only

Prime Minister Adriano Maleiane says that Mozambique needs to adapt its legislation of the insurance sector to the current reality and risk dynamics.

Maleiane was speaking in Maputo after swearing in Ester dos Santos José as President of the Board of Directors of the Instituto de Supervisão de Seguros de Moçambique (ISSM).

“We recognize that there are still challenges to be overcome, related to the need to update the legislation of the insurance sector to adapt it to the current reality and dynamics of risks in the insurance market, in particular the fundamental risks related to climate change,” he stressed.

According to the prime minister, challenges include the need to promote the growth of the ‘life and micro-insurance branch’ in the country, to modernize information and communication systems, and control money laundering.

Maleiane stressed that it was in taking into account this reality that “we recommend the recently sworn in and her team to make their contribution to the improvement of policies, strategies and institutional plans with a view to ensuring the continuous growth of the insurance sector in our country”.

He also recommended that she intensify ‘insurance literacy’ campaigns on the role of insurance in maintaining family income.

For the successful achievement of these and other goals, Ester dos Santos José should prioritise permanent dialogue with the various players in the insurance sector, as well as good management of the institution’s human, financial and asset resources.

In order to ensure the development of a stable, efficient and credible insurance market, the government in 2010 created the Instituto de Supervisão de Seguros de Moçambique, an institution dedicated to the supervision and inspection of insurance activity, in particular insurance companies and institutions, mediation bodies and supplementary pension funds.

Prime Minister Maleiane explained that, in pursuit of the objectives for which it was created, the Insurance Supervision Institute has also been ensuring the promotion of consumer education and protection, in addition to fostering the growth of the sector.

It was in this context, Maleiane said, that Mozambique had in the last five years seen the establishment of 19 insurance companies, one reinsurance company, two microinsurance companies, seven complementary pension fund management entities and 161 insurance intermediaries.

Source: AIM