AIMO favours growing insurance market in Mozambique

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AIMO favours growing insurance market in Mozambique

6:01 CAT | 18 Dec 2023

Image: AIMO

The Industrial Association of Mozambique (AIMO) participated in the second edition of the insurance market Índico, during which various aspects related to the insurance sector in Mozambique were discussed, including the current state of play in that market.

In the discussions, AIMO identified a variety of challenges that affect the access of small and medium-sized companies in the industrial sector of the insurance market, among which the following stand out.

1. Poor communication and information about products and poor financial and insurance literacy. Many companies in the industrial sector do not have adequate knowledge about the insurance products available on the market or access to essential information to make well-informed decisions in this area.

2. Competitive pricing. The high costs associated with insurance premiums have been a significant challenge for industrial companies, particularly small and medium-sized businesses. The market needs to look for solutions that enable more affordable prices, allowing a greater number of companies to have access to adequate coverage.

3. Insurance lines at banks. The availability of insurance lines at banking institutions was identified as a limiting factor for the access of small and medium-sized industrial companies to the insurance market. It is essential that mechanisms are created that facilitate obtaining insurance through these institutions, making the process more inclusive and simplified.

AIMO recognizes the importance of the insurance sector for the sustainable development of industries in Mozambique. The association regularly seeks close collaboration with stakeholders to overcome these challenges and promote a more favourable environment for the participation of small and medium-sized companies in the industrial insurance market.

The second edition of the Índico Conferences was held under the theme, ‘Insurance Market in Mozambique: Catching Up with Mega-Projects’ [Mercado de Seguros em Moçambique: Acertar o Passo dos Mega-Projectos]. Its main debate featured Ragendra de Sousa, former Minister of Industry and Commerce, representatives from ISSM, BCI, CIP Researcher, Emose and the Industrial Association of Mozambique. On the occasion, the latter entity shared some proposals that envisage the transformation of the national industrial sector into the extractive Industry segment, increasing local content, leadership of development projects which are implemented in Mozambique, among other topics.

AIMO is committed to continuing to support events such as the Indian Ocean conferences, which promote the exchange of knowledge and experiences relevant to the industrial and insurance sector.

Source: AIMO / Press Release